New Delhi: Ashok Leyland, the flagship of Hinduja Group, made sed a remarkable surge in its Q! FY24 net profits at INR 576 crore, an over eight-fold increase from INR 68 crore in the same period last year. The company’s revenue also grew to INR 8,189 crore in Q1 FY24, from INR 7,223 crore in Q1 FY23.
During the first quarter of 2023-24, Ashok Leyland’s domestic MHCV (Medium and Heavy Commercial Vehicles) volume grew by 7%, leading to an increase in market share from 30% to 31.2%. Additionally, the MHCV truck market share for Q1 FY24 reached 31.7%, compared to 31.1% in the same period the previous year.
In the LCV (Light Commercial Vehicles) segment, the company’s domestic volume in Q1 FY24 reached 14,821 units, a 3% rise compared to the same period last year (14,384 units).
The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q1 FY24 increased to 10.0% (INR 821crore) from 4.4% (INR 320 crore) in Q1 of the previous year. The net debt to equity ratio at the end of Q1 FY24 was 0.2 times.
Ashok Leyland attributed its strong financial performance to the robust demand for its modular AVTR range of trucks, expansion of its network, and the market acceptance of its Bada Dost range in the LCV segment. The Power Solutions and Aftermarket businesses also played a vital role in contributing to the company’s overall revenue.
The lower tax expense for the quarter was a result of a one-time deferred tax credit of INR 172 crore, related to the expected transition to a lower tax regime in the following financial year.
Dheeraj Hinduja, Executive Chairman, Ashok Leyland, expressed satisfaction with the company’s Q1 FY24 results, highlighting its focused market performance and cost control measures.
“With the industry maintaining the growth in Q1 FY24, we have been able to post excellent results with focused market performance while reining in costs. We are pleased that we have continued to grow our market share in Q1. We are concurrently intensifying our efforts in international expansion. Through our Electric Vehicle subsidiary, Switch Mobility, we are actively moving towards net zero carbon mobility. The EV market is growing gradually, and we are geared to participating in this growth with a clear road map,” Hinduja said.
Shenu Agarwal, MD and CEO, Ashok Leyland, said the improvement in the company’s bottom line was owing to the revenue expansion and efficient cost management. He stressed their commitment to achieving and sustaining double-digit profitability while continuing to expand their market presence and invest in future technologies.
“With expansion in revenues and efficient cost management we have seen our bottom line improving substantially. While we continue to expand our market penetration on the back of efficient products and expanding the network, we shall remain acutely focused on achieving and sustaining double-digit profitability. This is important for us as we focus on improving our resilience and investing in technologies of the future,” Agarwal said.
