Ashok Leyland Drives Forward with Record Q3 Performance

In an impressive feat, Ashok Leyland, the driving force of the Hinduja Group in India, has just clocked its strongest Q3 performance to date. Here are the details. Read on

Ashok Leyland, the Indian flagship of the Hinduja Group delivered a record Q3 with respect to its focus on enhancing profitability. The company reported EBITDA of Rs 1114 Cr (12.0 percent) in Q3 FY24 vis-a-vis Rs 797 Cr (8.8 percent) in Q3 FY23, registering double-digit percentage EBITDA in all three quarters of the fiscal year. 

It also achieved a net profit of Rs 580 crores, an increase of 60 percent over Q3 FY23 and recorded revenues of Rs 9273 crores vis a vis Rs 9030 crores in Q3 FY23 – a growth of 2.7 percent. Additionally, Ashok Leyland achieved a historic high CV volume of 1,38,416 units in the first nine months of the fiscal year.

Furthermore, despite global headwinds, the company achieved an export volume of 3128 units in Q3 FY24 against 2936 units in the same period last year, registering a growth of 6.5 percent. Moreover, Debt was at Rs 1747 crores at the end of Q3 FY24 with debt-equity at 0.2 times as compared to 0.3 times at the end of the previous quarter. 

Also, Rs 662 crores were invested in the current quarter into Optare PLC / Switch, as prospects of electric light commercial vehicles (LCVs) and electric buses to continue to strengthen its profit outcomes. 

Related Link: Commercial Vehicle Sales July 2023: Ashok Leyland And Mahindra Report Growth While Tata Motors Sales Dip 

What Does Ashok Leyland Have To Say? 

Dheeraj Hinduja, executive chairman, Ashok Leyland, said, “The present favourable market conditions are expected to hold in the foreseeable future. The steady progress we are making in sales volume and profitability is backed by products that deliver superior performance and customer value.”

“A suite of new products in conventional and alternate propulsion technologies is slated for introduction progressively to consolidate our gains in the domestic market and facilitate our forays in overseas markets,” he added. 

Shenu Agarwal, managing director and CEO, Ashok Leyland, added, “We have been able to achieve significant improvement in our Net Profits. The current quarter saw the confluence of good volumes, better price realisation, and higher cost savings, thus helping us achieve better profitability.“

“Other businesses such as after-market, power solutions and Defence also continue to strongly contribute to our top line and margins. On the back of new differentiated products, a deeper focus on cost optimisation, and with continued discipline on pricing, we shall relentlessly pursue improvement in profitability,” he added. 

What Are The Latest Offerings?

In the recently held Bharat Mobility Global Expo in New Delhi, the company commenced delivery of its first Electric 55T tractor-trailer and its first 14T Boss Electric Truck which resonates with the brand’s identity of offering advanced commercial-grade vehicles. 

What We Think? 

While being on the cusp of a new era where commercial-grade electric trucks are going to be the future of last mile and long lead mobility operations, Ashok Leyland seems to be heading in the right direction, with a focus on sustainable mobility and improving the profitability of its business ventures. 

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Ashok Leyland Electrifies Bharat Mobility Expo with Revolutionary 14T Boss Electric Truck