Ashok Leyland Q3 net profit grows 36% to ₹762 crore

Ashok Leyland Ltd. reported 36% growth in Q3 consolidated net profit to ₹762 crore compared with ₹560 crore in the year ago.

Rrevenue from operations grew 6% to ₹10,375 crore as against ₹9,806 crore in the year-ago period.

The company said it had achieved an export volume of 4,151 units against 3,128 units in the same period last year, up 33%. During the quarter, it turned cash positive with net cash of ₹958 crore as against net debt of ₹1,747 crore in the same period last year. 

Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said, “The steady progress we are making in profitability is backed by products that deliver superior performance coupled with robust customer engagement.”

“Sales in international markets are showing strong growth, and we expect this momentum to accelerate with the launch of new products. We are also continuing to invest in battery electric and alternate fuel products to maintain our technology leadership position. Switch has a healthy order book and has plans to come out with a series of products in the next 12 months,” he said.

Shenu Agarwal, Managing Director & CEO, Ashok Leyland, said, “Relative to Q2, the Medium & Heavy Commercial Vehicle (MHCV) market has revived significantly in Q3, and is expected to improve further as we enter the last quarter. Our focus remains on profitable growth through product premiumisation, cost leadership, better service reach and enhanced value-added services.”

“Non-Commercial Vehicles (CV) businesses have done well and offer more headroom for growth. We remain optimistic about the growth of the CV industry in the medium and long term as macroeconomic factors continue to be favourable,” he added. The company said its domestic MHCV market share continues to be over 30% and it maintained market leadership in the bus segment. 

The board has approved the investment of up to GBP 45 million (equivalent to ₹500 crore) in Optare Plc. UK, subsidiary as equity in one or more tranches and – to invest upto ₹200 crore in Hinduja Leyland Finance Ltd., a material subsidiary, as equity, in one or more tranches.