The impressive surge in volume performance, amplified by a substantial rise in bus sales and a significant tax credit windfall, propelled the net profit of Daimler India Commercial Vehicles (DICV)—the manufacturer of BharatBenz trucks—to ₹1,787 crore (approximately $212 million) for FY24, according to the company’s annual filings with the Registrar of Companies (RoC).
This marks the second consecutive year of profitability, helping reduce its accumulated losses to ₹5,807 crore in FY24, down from ₹7,594 crore in the prior fiscal year. Notably, prior years’ accumulated losses have facilitated a reduced tax burden, further bolstering net profit.
Profit before tax for FY24 soared to ₹347 crore, more than doubling from ₹124 crore in FY23, driven by expanding operating margins and lower depreciation. Operating profit climbed 34% to ₹739 crore, translating to an operating margin of 6.27%—an expansion of 109 basis points year-over-year. The pure play truck maker Ashok Leyland had an operating profit margin of 12% in FY24 and expanded by around 400 basis points on sales volume of around 194,683 units that translated into revenue of Rs 38,367 crore that is one-third of that of Daimler Commercial Vehicles.
The bus segment led revenue growth, witnessing a 54% increase to ₹649 crore in FY24 compared to ₹420 crore the previous year. The truck segment recorded an 11.25% rise in revenue, reaching ₹8,077 crore year-over-year. Overall, the company’s domestic business grew by 32% to ₹8,273 crore, counterbalancing a 22% decline in overseas revenue, which fell to ₹324 crore. The resilience of the Indian vehicle market managed to offset pressures from international operations.
The FY24 director’s report stated, “During the year under review, total revenue increased to ₹11,792 crore from ₹10,664 crore in the previous year. Your Company achieved a net profit after tax of ₹1,787 crore, a significant rise from the ₹3,03 crore reported in the previous year.” Total revenue for FY24 exhibited a 10% increase, reaching ₹11,792 crore.
For the January to March 2024 quarter, DICV noted that the calendar year 2023 had been marked by a 39% growth in domestic sales and a 13% increase in cumulative annual sales. The company reported 21% growth in both revenue and parts sales for 2023, with bus sales notably doubling.
Reflecting on the year, Satyakam Arya, Managing Director and CEO of DICV, declared in March that 2023 had been the company’s most successful year, as evidenced by the FY24 results. “This was the best year for us—we sold 23,400 trucks, achieving a 35% growth, with bus sales growing by over 100%. We outpaced the market by a factor of 3.5 in 2023. It was an outstanding year, and we aim to carry this momentum into 2024,” Arya said.
In 2024, DICV launched 14 new products across three market segments, anticipating that the light-to-heavy-duty vehicle market would outperform a forecasted flat market due to geopolitical challenges and the national election earlier in the year. The company highlighted that its record-breaking sales and financial growth since its inception were driven by strong demand for its tipper and tractor-trailer models, which grew by 53% and 79%, respectively, compared to 2022.
In January 2023, DICV transitioned its entire BharatBenz truck and bus lineup to meet OBD-II compliance, focusing on minimizing the total cost of ownership and enhancing productivity through extended service intervals. In April 2024, the company launched an innovative heavy-duty truck range with several first-of-their-kind features, enhancing the value proposition for customers. DICV also introduced its proprietary 12-speed Automated Manual Transmission (AMT) for BharatBenz trucks and unveiled a newly re-engineered construction and mining truck series designed for greater productivity.
Arya noted that a series of strategic initiatives undertaken in 2023 enabled the company to make cost-effective decisions, navigate challenges adeptly, and sharpen its strategic focus. “We commenced CY2024 with a strong sense of confidence, supported by an enhanced product portfolio aimed at propelling business growth to unprecedented levels. We are committed to pushing boundaries in terms of total cost of ownership, uptime, and reliability—all to the benefit of our customers with our new MY24 heavy-duty truck lineup. These trucks showcase our sophisticated product development capabilities, setting the stage for new solutions that will meet future mobility needs,” he stated.
On the sustainability front, DICV reported that approximately 85% of its manufacturing operations are powered by renewable energy, and nearly 90% of its plant functions using upcycled water, contributing to a reduction of over 27,000 tonnes of carbon emissions.