Leading truck and bus maker Ashok Leyland has reported a whopping 61 per cent increase in its net profit at ₹580 crore for the quarter ended December 31, 2023 compared with ₹361 crore in the year-ago period, on the back of better operating performance amid a modest rise in revenue.

The company’s revenue from operations grew by about 3 per cent at ₹9,273 crore ( ₹9,030 crore). However, its EBITDA was significantly higher at ₹1,114 crore in Q3FY24 against ₹797 crore in Q3 FY23. EBITDA margin was strong at 12 per cent against 8.8 per cent. The company has maintained a double-digit percentage EBITDA in all three quarters of this fiscal.

“We have been able to achieve significant improvement in our net profits. The December quarter saw the confluence of good volumes, better price realization, and higher cost savings, thus helping us achieve better profitability,” said Shenu Agarwal, Managing Director & CEO, Ashok Leyland.

Exports rise

While the domestic market was facing some slowdown in medium and heavy truck sales, the company managed to grow its exports to 3,128 units when compared with 2,936 units.

Its debt stood at ₹1,747 crore as of Q3FY24 with debt-equity at 0.2 times compared with 0.3 times at the end of the previous quarter.

The company invested ₹662 in the December 2023 quarter into Optare Plc/ Switch, as growth prospects for electric small trucks and buses continue to strengthen. The company’s other businesses such as after-market, power solutions, and defence also continued to contribute to its top line and margins.

“We remain confident and optimistic about the growth of the CV industry in the medium and long term as macroeconomic factors continue to be favorable,” he added.

For the 9 months ended December 31, 2023, the company’s net profit zoomed to ₹1,717 crore ( ₹629 crore). Revenue stood at ₹27,100 crore ( ₹24,518 crore).

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