Commercial vehicle maker Ashok Leyland on Thursday said its profit after tax nearly tripled to Rs 561 crore in September 2023 quarter 2023-24. In the year-ago period, the PAT was Rs 199.31 crore.
Revenues during the quarter under review rose to Rs 9,638 crore from Rs 8,266 crore in the second quarter of FY23, the company said in a statement. It said EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) for the quarter was Rs 1,080 crore as against Rs 537 crore in the corresponding quarter of FY23.
Net debt stood at Rs 1,139 crore at the end of the second quarter, it said. The domestic medium and heavy commercial vehicles (MHCV) sales stood at 29,947 units, up 18 per cent from the second quarter of the previous fiscal, which is in line with industry growth.
Light commercial vehicle (LCV) volume was at 16,998 units compared to 17,040 LCVs sold in the same period last year, Ashok Leyland said. Export volumes for the quarter (MHCV & LCV) were 4 per cent higher at 2,901 units from the year-ago period despite multiple socio-political challenges across the globe.
The company said while its overall MHCV MS is moving in the right direction, it significantly increased its bus market share, making it the top bus manufacturer in the country. “We have grown and grown profitability. The second half of the year appears to have the twin tailwinds of demand growth and softer commodity prices which should improve the profitability of the industry,” Shenu Agarwal, Managing Director and Chief Executive Officer of Ashok Leyland, said.
This is the third consecutive quarter of double-digit EBITDA, he said, adding that there is tremendous focus on margin enhancement, network expansion, operational efficiency, cost optimisation and deployment of digital as an enabler for growth and productivity. There is an enhanced thrust to grow all non-MHCV businesses as well and “we expect to see the benefits of all of this in the coming quarters,” he added.
Further, the company said that its all other businesses posted good growth in the current quarter and added that it expanded its MHCV range by launching new products in tipper, tractor and MAV categories. The focus on expansion of the distribution network continued with further addition of 47 touch points in the quarter, especially in the northern and eastern parts of the country, it said.
“We continue to see strong demand in all segments of trucks and passenger vehicles. The industry continues to post strong growth, on the back of strong macroeconomic factors and we are confident that FY24 will see further growth in the second half as well,” Dheeraj Hinduja, Executive Chairman of Ashok Leyland, said. While International business globally is challenged owing to the conflicts across the globe, “we are intensifying our expansion strategy in our focus markets of the Middle East, Africa and Asia,” he said.
The company continues to build its capabilities in alternative energy and shall be soon coming up with some exciting products and solutions, Hinduja added.
(With Inputs from PTI)
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