Ashok Leyland, a leading truck and bus manufacturer, achieved record-high EBITDA and net profit in FY24, despite a modest single-digit increase in revenue. This performance was driven by better price realisations, lower commodity prices, and strong margins in non-truck businesses.

The company has appointed KM Balaji, currently Deputy CFO, as the new Chief Financial Officer. Gopal Mahadevan, the current CFO and Whole Time Director, will transition to the role of Director of Strategy-Finance and M&A, while continuing to serve on the board of the company and its subsidiaries.

“FY24 has been a record year for the company, coinciding with our 75th anniversary, making it even more special,” said Dheeraj Hinduja, Chairman of Ashok Leyland Ltd. In FY24, Ashok Leyland’s revenue grew by six per cent to ₹38,367 crore — the highest annual revenue to date — compared to ₹36,144 crore in FY23. This was achieved despite a marginal increase in overall commercial vehicle volumes, which rose to 194,555 units from 192,205 units in FY23.

The company’s profit after tax surged 90 per cent to ₹2,618 crore, the highest annual profit ever recorded, up from ₹1,380 crore in FY23. EBITDA increased to ₹4,607 crore (₹2,931 crore), with the EBITDA margin expanding to 12 per cent from 8.1 per cent the previous year (14.1 per cent in Q4FY24).

“Despite the modest rise in our topline, we improved our margins through price increases, reduced material costs, and various other initiatives,” noted Mahadevan.

FY24 was also a significant year for cost savings, with material costs as a percentage of revenue decreasing by 4.4 per cent compared to FY23. “Another factor supporting profitability was the impressive growth in our high-margin businesses, such as spare parts, defense, and power solutions,” stated Hinduja.

The market has shown confidence in Ashok Leyland’s growth potential, with the stock price reaching a new peak. He added that since April 1, 2023, the company’s market capitalisation has appreciated by 50 per cent.

Mahadevan highlighted that after investing ₹1,200 crore in Switch Mobility and ₹300 crore in Ohm Mobility, the company has achieved near-zero debt, with only about ₹80 crore remaining on the balance sheet. For the quarter ended March 31, 2024, the company’s PAT grew by 20 per cent to ₹900 crore (up from ₹751 crore in Q4FY23), while revenue saw a slight decline to ₹11,267 crore (from ₹11,626 crore). However, EBITDA increased to ₹1,592 crore (₹1,276 crore).

Shares of the company slipped 0.87 per cent to end at ₹210.55 a piece on Friday.