Ashok Leyland reports record profits and volume growth in Q3 FY24
Ashok Leyland, the flagship company of the Hinduja Group, has announced a remarkable performance for the third quarter of the fiscal year 2024, highlighting its focus on profitable growth amidst challenging global conditions. The Indian automobile giant reported significant achievements across key financial metrics, emphasizing its dominance in the commercial vehicle (CV) sector and progressive strides in electric vehicle (EV) technologies.
In Q3 FY24, Ashok Leyland achieved an EBITDA of Rs. 1,114 crores (12.0%), a notable rise from Rs. 797 crores (8.8%) in the same quarter the previous year, marking consistent double-digit EBITDA percentages throughout the fiscal year. The net profit soared by 60% to Rs. 580 crores, underpinned by a revenue increase of 2.7% to Rs. 9,273 crores. This financial strength is further evidenced by a historic high in CV volume, with 1,38,416 units sold in the first nine months of FY24.
The company’s adept management of its financials is apparent in its strategic investments and debt management. A significant investment of Rs. 662 crores was made into Optare PLC / Switch, enhancing its prospects in electric light commercial vehicles (eLCVs) and electric buses (eBuses). Furthermore, Ashok Leyland managed to reduce its debt to Rs. 1,747 crores at the end of Q3 FY24, maintaining a healthy debt-equity ratio of 0.2 times.
Historic Highs for Ashok Leyland: EBITDA, Net Profit, and Commercial Vehicle Sales Soar
Ashok Leyland has retained its leadership in the bus market, securing orders for more than 3,800 buses from State Transport Undertakings during the quarter. The company’s innovation was also on full display at the Bharat Mobility Global Expo in New Delhi, where it commenced delivery of its first Electric 55T Tractor – Trailer and its first 14T Boss Electric Truck, showcasing its commitment to sustainable transportation solutions.
Dheeraj Hinduja, Executive Chairman of Ashok Leyland, emphasized the favorable market conditions and the company’s continuous efforts to enhance sales volume and profitability through superior product performance and robust customer engagement. Shenu Agarwal, Managing Director & CEO, highlighted the significant improvement in net profits, attributing it to good volumes, better price realization, and cost savings.
Ashok Leyland’s record performance in Q3 FY24 is a testament to its strategic focus on profitable growth, effective debt management, and investment in future technologies. The company’s ability to achieve historic sales volumes and profitability in a challenging global market underscores its resilience and innovative approach to business. With a strong portfolio of conventional and alternative propulsion technologies, Ashok Leyland is well-positioned to consolidate its gains in the domestic market and expand its footprint globally.