Chennai: Hinduja Group company Ashok Leyland reported an 8.7 percent decline in standalone net profit at Rs 525.58 crore in the first quarter of FY25, compared to Rs 576.42 crore in the corresponding period of previous financial year.
During the quarter under review, Ashok Leyland's net profit significantly plummeted compared to the profit of Rs 900.41 crore reported in the March quarter, reported Money control.
India’s second-largest Medium and Heavy Commercial Vehicle (MHCV) manufacturer attributed this decline to a one-time tax expenditure, which was recorded as an exceptional item in the financial results.
Ashok Leyland reported a 5 percent year-on-year increase in revenue from operations, reaching Rs 8,599 crore for the April-June 2024 period, up from Rs 8,189 crore in the same period last year.
The jump in revenue resulted due to record Q1 with highest ever Commercial Vehicle volumes of 43893 units. This volume stood at 41,329 units in the same period, previous year.
The company also reported highest EBITDA and Profit Before Tax of Rs. 911 crore and Rs 701 crore respectively.
Ashok Leyland’s domestic MHCV volume grew by 8 % and market share was at 30.7 %. The bus market share was significantly up at 33.3%.
The Company’s domestic Light Commercial Vehicle volume in Q1 FY’25 was 15345 units, 4% higher than Q1 of last year which was14821 units.
The company’s export volume in Q1 FY25 was 2324 units, 5% higher than 2222 units in Q1 of last year.
EBITDA stood at Rs. 911 crore up at 10.6% for Q1 FY25 as against 10.0 % which was Rs 821 crore in Q1 of previous year.
Net Debt to Equity ratio stood at 0.1 at the end of Q1FY25.
“The company continued to see strong demand in all its business units. While the Company achieved its highest ever Q1 CV volumes, the Power Solutions, Aftermarket, Defence business and the International Operations also contributed strongly to the top line,” Ashok Leyland said.
The efforts on product and network expansion helped the uptick in revenue and market share.
On the Q1FY25 results, Ashok Leyland Chairman Dheeraj Hinduja said “I am happy to note that the industry continues to maintain the growth momentum, contrary to the expectations at the start of this year. Q1 Industry volumes were at comparable levels of the previous peak of Q1 FY19.
"Ashok Leyland’s Q1 performance has beaten all expectations, we have been able to post excellent results with focused market performance while reining in costs.
"Through our Electric Vehicle subsidiary, Switch Mobility, we are geared to participate in the growing EV market with a clear road map. The launch of IeV3 this month, second e-LCV launch by Switch, will further strengthen our position in this market.”
Ashok Leyland Managing Director & CEO Shenu Agarwal added, “With expansion in revenues and efficient cost management we have seen our bottom line improving substantially. The non-CV businesses also have grown substantially.
"While we continue to expand our market penetration on the back of efficient products and network expansion, we shall remain acutely focused on achieving mid-teen EBITDA in the medium term. This is important for us as we continue to focus on investing in technologies of the future.”
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