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Ashok Leyland gains as Q2 PAT jumps 34% YoY to Rs 706 crore

08-Nov-24 15:39 Hrs IST

Revenue from operations declined 2.35% to Rs 11,147.58 crore posted in the second quarter of FY25 as against Rs 11,416.66 crore posted in Q2 FY24.

Profit before tax was at Rs 1,078.06 crore in Q2 FY25, marking a growth of 16.25% as against Rs 927.31 crore posted in Q2 FY24.

The company reported exceptional items of Rs 119.02 crore in Q2 FY25 as against exceptional loss of Rs 38.39 crore posted in Q2 FY24.

Ashok Leyland recorded an 11.6% rise in EBITDA for the September 2024 quarter at Rs 1,017 crore as compared to 11.2% (Rs 1,080) crore posted in the corresponding quarter of the previous financial year.

On half year basis, the company's net profit gained 13.54% to Rs 1,214.79 crore on 0.18% rise in revenue from operations to Rs 18,896.95 crore in H1 FY25 over H1 FY24.

Dheeraj Hinduja, executive chairman, Ashok Leyland, said, 'The Indian Economy is expected to do well in the second half which would benefit our industry. We remain optimistic about industry prospects for H2 on back of strong macroeconomic fundamentals, supported by resumption of Government spending in capex and good monsoons.

Our robust all-round performance in Q2 is backed by our technologicol and cost leadership. Internationally as well, we are intensifying our expansion strategy in our focus markets of SAARC, Middle East, Africa and Asia, aimed at posting the best performance ever during this fiscal. We continue to invest in new products with alternative fuels. Switch is doing well with an order book of nearly 2000 buses.'

Shenu Agarwal, MD & CEO, Ashok Leyland, added, Our focus on profitability continues. We are happy that we could improve our profitability by focusing on premiumization of our products, addressing cost compression opportunities, and continuously elevating our standards of customer service.

Our PAT for Q2FY25 is an all-time high. Our EBITDA margins have improved both sequentially and on YaY basis, making this the seventh consecutive quarter of double-digit EBITDA. We are well on track to achieve mid-teen EBITDA in the medium term.

Meanwhile, the company's board declared an interim dividend of Rs 2 per share for FY25. The said interim dividend will be paid on or before 7 December 2024.

Ashok Leyland is engaged in manufacture and sale of a wide range of commercial vehicles. The company also manufactures engines for industrial and marine applications, forgings and castings.