Ashok Leyland reports marginal growth in revenue; PAT dips 9%

Chennai: Ashok Leyland reported a marginal growth in revenue and sales volume of commercial vehicle (CV) in the quarter ended June 30, 2024. Revenue in Q1 FY25 grew by 5% at Rs 8,599 crore, against Rs 8,189 crore during the year ago quarter. The CV sales stood at 43,893 units in quarter ended June 30, 2024, an increase by 6% over 41,329 units sold in the corresponding quarter last year.

The Profit after Tax (PAT) declined 8.6% at Rs 526 crore in Q1 FY25, as against Rs 576 crore during the same quarter in the previous year (FY24). Its domestic medium and heavy commercial vehicle (MHCV) volume grew by 8% and market share was at 30.7%, while the bus market share was up at 33.3%. The company’s domestic LCV volume in Q1 FY25 was 15,345 units.
The export volume in the April-June quarter of 2024-25 was at 2,324 units, a 5% jump when compared with the year ago quarter at 2,222 units. Its EBITDA went up at 10.6% during Q1 FY25 at Rs 911 crore against 10% (Rs 821 crore) in Q1 of the previous year.
Dheeraj Hinduja, chairman, Ashok Leyland said, there was a widespread anxiety that the commercial vehicle industry might degrowth owing to the impact of elections and other factors during the beginning of this year. “On the contrary, the MHCV industry volumes recorded a growth in the first quarter by 10%. In fact, Q1 FY25 has been a record quarter for us. Whether it is CV volumes, revenue, EBITA margin, we have achieved an all-time high number in Q1.”
“During the Q1 of last financial year (FY24), we had to restate a deferred tax liability, as per the new tax rate leading to a one time reversal of tax liability of Rs 172 crore. But, for this reversal, our PAT of Rs 526 crore for Q1 FY25 is also the ever highest,” he told reporters through a virtual press conference on Thursday.
Shenu Agarwal, MD & CEO, Ashok Leyland said, the company is very optimistic for the whole year. “Four or five segments will see the growth momentum. The sale of tippers will increase in view of investments in the infrastructure segment in the budget. The tractor and bus segments are also doing very well,” he said. He said, the company’s Capex is Rs 750 crore to Rs 800 crore for FY25. “Most of our Capex will go into new product development because we are not expanding on our capacity currently as we have sufficient capacity for the at least next two-three years.”