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Ashok Leyland soars after strong Q3 outcome

12-Feb-25 14:34 Hrs IST

Ashok Leyland, the Indian flagship of the Hinduja Group and the country's leading commercial vehicle manufacturer, achieved an all-time high net profit of Rs 762 crore in Q3FY25, an increase of 31% over same period last year.

It recorded all time high revenues of Rs 9,479 crore in Q3FY25 vis a vis Rs 9,273 crore in Q3 FY24, up 2.22% year-on-year.

The company reported all time high Q3 EBITDA of Rs 1211 crore (12.8% margin), up 8.71% over Rs 1114 crore (12.0% margin) in Q3 FY24, registering double-digit percentage EBITDA margin for the 8th consecutive quarter.

It achieved export volume of 4,151 units in Q3 FY25 against 3,128 units in the same period last year, registering a growth of 33%. Turned cash positive at end ofthe quarter with a net cash of Rs 958 crore as against net debt of Rs 1747 crore at end of Q3FY24.

Ashok Leyland's domestic MHCV market share continues to be over 30%. The company also maintained market leadership in the Bus segment. Ashok Leyland recently launched SAATHI, its foray into the entry level LCV segment, opening up a new customer segment, which was previously unaddressed.

At the recently held Bharat Mobility Global Expo, Ashok Leyland showcased concept of industry-first electric Port Terminal Tractor as well as India's first is-meter bus with a front engine and capacity of 42 sleeper births. At the show, Switch displayed a concept electric truck in the 7.5T GVW range, again a first in the segment. The Defence, Power Solutions and Aftermarket Businesses continue to perform well.

Dheeraj Hinduja, executive chairman, Ashok Leyland, said The steady progress we are making in profitability is backed by products that deliver superior performance coupled with robust customer engagement. Sales in international markets are showing strong growth, and we expect this momentum to accelerote with the launch of new products. I compliment the management and all our team for delivering a record breaking Q3 for the second year in a row. We are also continuing to invest in battery electric and alternate fuel products to maintain our technology leadership position. Switch has a healthy order book and has plans to come out with a series of products in the next 12 months.

Shenu Agarwal, managing director & CEO, Ashok Leyland, added, Relative to Q2, the MHCV market has revived significantly in Q3, and is expected to improve further as we enter the last quarter. Our focus remains on profitable growth through product premiumization, cost leadership, better service reach and enhanced value-added services. Non-CV businesses have done well and offer more headroom for growth. We remain optimistic about the growth of the CV industry in the medium and long term as macroeconomic factors continue to be favorable.