Ashok Leyland Q2 net profit rises 37% to Rs 770 crore, firm declares Rs 2 dividend

Ashok Leyland Q2 results: Net profit rises 37% to Rs 770 crore

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Ashok Leyland Ltd on November 8 reported 37% rise in net profit at Rs 770 crore for the quarter ended September 30, 2024. The company reported net profit of Rs 561 crore in the year-ago period.

The company's revenue from operations fell 9% to Rs 8,769 crore in Q2FY25 as against Rs 9,638 crore in Q2FY24.

At 1:15 pm on November 8, Ashok Leyland's shares were trading 0.26% lower at Rs 215.23 apiece.

The company declared an interim dividend of Rs 2 per share.

"Owing to continued improvement in company's fiscal performance and a positive outlook for the balance half of the year, the Board has recommended an interim dividend of Rs 2 per share on face value of Re 1," said Ashok Leyland in a stock exchange filing.

Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said: "The Indian economy is expected to do well in the second half which would benefit our industry. We remain optimistic about industry prospects for H2 on back of strong macroeconomic fundamentals, supported by resumption of Government spending in Capex and good monsoons. Our robust all-round performance in Q2 is backed by our technological and cost leadership. Internationally as well, we are intensifying our expansion strategy in our focus markets of SAARC, Middle East, Africa and Asia, aimed at posting the best performance ever during this fiscal. We continue to invest in new products with alternative fuels. Switch is doing well with an order book of nearly 2,000 buses."

Shenu Agarwal, MD & CEO, Ashok Leyland, said: "Our focus on profitability continues. We are happy that we could improve our profitability by focusing on premiumization of our products, addressing cost compression opportunities, and continuously elevating our standards of customer service. Our PAT for Q2FY25 is an all-time high. Our EBITDA margins have improved both sequentially and on YoY basis, making this the seventh consecutive quarter of double-digit EBITDA. We are well on track to achieve mid-teen EBITDA in the medium term."

EBITDA for the quarter was up at 11.6% (Rs 1,017 crore) as against 11.2% (Rs 1080 crore) in the corresponding period last year, said the company.

"Ashok Leyland's Domestic MHCV market share continues to be over 31%. The company maintained market leadership in the Bus segment. The LCV domestic market share in the addressable segments has also gained in the first half of the year," said the company.