Ashok Leyland Reports Nearly Tripled Profit After Tax in September Quarter 2023-24
Commercial vehicle maker Ashok Leyland announced a significant increase in its profit after tax (PAT) to Rs 561 crore in the September quarter of 2023-24. The company’s PAT in the same period last year was Rs 199.31 crore.
According to a statement by the company, revenues in the quarter rose to Rs 9,638 crore from Rs 8,266 crore in the second quarter of FY23. The company also reported EBITDA of Rs 1,080 crore for the quarter, up from Rs 537 crore in the corresponding quarter of FY23. At the end of the second quarter, the company’s net debt stood at Rs 1,139 crore.
During the quarter, domestic medium and heavy commercial vehicles (MHCV) sales increased by 18% to 29,947 units, in line with industry growth. However, light commercial vehicle (LCV) volume was slightly lower at 16,998 units.
Despite socio-political challenges, export volumes for the quarter (MHCV & LCV) were 4% higher at 2,901 units compared to the year-ago period.
The company also stated that it has grown profitability, with a focus on margin enhancement, network expansion, operational efficiency, cost optimization, and deployment of digital as an enabler for growth and productivity. It expects to see the benefits of this effort in the coming quarters.
Ashok Leyland’s Executive Chairman, Dheeraj Hinduja, expressed confidence in the industry’s strong growth, particularly in the second half of FY24. However, he acknowledged the challenges in international business due to global conflicts.
The company continues to expand its distribution network and is intensifying its expansion strategy in the Middle East, Africa, and Asia. Additionally, it is focusing on alternative energy capabilities and plans to introduce new products and solutions in the near future.
I have over 10 years of experience in the cryptocurrency industry and I have been on the list of the top authors on LinkedIn for the past 5 years.