Ashok Leyland Records Net Profit Of Rs. 576 Crore In Q1 FY24

Ashok Leyland reported a more than eight-time jump in YoY quarter profits in Q1 FY’24 with the net profits for the quarter standing at Rs. 576 crore as against Rs. 68 crore in the same period last year. The revenue for the quarter stood at Rs. 8,189 crore as against Rs. 7223 crore in Q1 FY’23. In the same period, Ashok Leyland’s domestic MHCV volume grew by 7 per cent and its market share grew from 30.0 per cent to 31.2 per cent.

The MHCV truck market share was at 31.7 per cent for Q1, FY24, as against 31.1 per cent in the same period last year. The company’s domestic LCV volume in Q1 FY’24 was 14821 units, 3 per cent higher than Q1 of last year, which was 14,384 units. The EBITDA shot up to 10.0 per cent for Q1 FY24 at Rs. 821 crore as against 4.4 per cent, at Rs. 320 crore in Q1 of the previous year. The Net debt-to-equity ratio stood at 0.2 times at the end of Q1 of FY24.

Shenu Agarwal, MD & CEO, Ashok Leyland, said, “While we continue to expand our market penetration on the back of efficient products and expanding the network, we shall remain acutely focused on achieving and sustaining double-digit profitability.”

Ashok Leyland continued to see strong demand for the modular AVTR range of trucks. The efforts on network expansion also helped the uptick in revenue and market share. In the LCV segment as well, the volumes grew on the back of good market acceptance of our Bada Dost range.

The Power Solutions and Aftermarket businesses continued to contribute strongly to the top line. The tax expense for the quarter was lower as it considered a one-time deferred tax credit of Rs. 172 crore on account of the expected transition to a lower tax regime in the following financial year.