The Chennai-based commercial vehicle major Ashok Leyland reported a 747 percent year-on-year (YoY) jump in its standalone net profit for the first quarter ended June, at Rs 576.42 crore as against Rs 68 crore in the same period last year.
Meanwhile, the company’s standalone revenue for the quarter also rose to Rs 8,189 crore as against Rs 7,223 crore in Q1 FY23.
“We are pleased that we have continued to grow our market share in Q1. We are simultaneously intensifying our efforts in international expansion. Through our Electric Vehicle subsidiary, Switch Mobility, we are actively moving towards net zero carbon mobility. The EV market is growing gradually, and we are geared to participating in this growth with a clear road map,” Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said.
During the quarter under review, Ashok Leyland’s domestic MHCV volume grew by 7% and market share grew from 30% to 31.2%. The MHCV truck market share was at 31.7% for Q1FY24 as against 31.1% in the same period last year.
The Company’s domestic LCV volume in Q1 FY’24 was 14821 units, 3% higher than Q1 of last year (14384 units).
EBITDA shot up to 10% for Q1 FY24 (Rs 821 crore) as against 4.4% (Rs 320 crore) in Q1 of the previous year. Net Debt to Equity stood at 0.2 times at the end of Q1 FY24.
According to Shenu Agarwal, MD and CEO, Ashok Leyland, with expansion in revenues and efficient cost management, the company’s bottom line has improved substantially. “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. This is important for us as we focus on improving our resilience and investing in technologies of the future,” he added.
The Company 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, volumes grew on the back of good market acceptance of their Bada Dost range. The Power Solutions and Aftermarket businesses continued to contribute strongly to the top line of the Company.
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.