Ashok Leyland's Q1 net profit declines 9% to Rs 526 crore

The firm's revenue stood at Rs 8,598.53 crore in the June quarter, growing 5 percent over Rs 8,189.29 crore in the year-ago period.

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Ashok Leyland on July 25 reported an 8.7 percent decline in standalone net profit at Rs 525.58 crore in the first quarter of FY25, compared to Rs 576.42 crore in the corresponding period of previous financial year. The net profit for the quarter under review has declined significantly from the March quarter profit, which came in at Rs 900.41 crore.

Ashok Leyland has attributed this decline in net profit to a one-time tax expenditure reported as exceptional item in the results.

Ashok Leyland reported a 5 per cent year-on-year increase in revenue from operations, reaching Rs 8,599 crore for the April-June 2024 period, up from Rs 8,189 crore in the same period last year.

Dheeraj Hinduja, chairman, Ashok Leyland maintains that Q1 Industry volumes were at comparable levels of the previous peak of Q1 FY19. In his view, “Ashok Leyland’s Q1 performance has beaten all expectations, we have been able to post excellent results with focused market performance while reining in costs.”

The Chennai-based commercial vehicle maker’s EBITDA saw a surge of 11.2 percent, reaching Rs 912 crore compared to Rs 820 crore earlier. This improvement led to an increase in operating margin of 10.6 percent from the previous 10 percent.

Ashok Leyland said it registered highest-ever commercial vehicle sales in the first quarter of FY25 with a volume of 43,893 units.

The Hinduja Group's flagship firm's domestic light-commercial-vehicle volume was 4 percent higher at 15,345 units, while its export volume was 5 percent higher at 2,324 units.

Shenu Agarwal, managing director & CEO, Ashok Leyland, added, “With expansion in revenues and efficient cost management we have seen our bottom line improving substantially. The non-CV businesses also have grown substantially. While we continue to expand our market penetration on the back of efficient products and network expansion, we shall remain acutely focused on achieving mid-teen EBITDA in the medium term. This is important for us as we continue to focus on investing in technologies of the future.”

According to the company, it is witnessing a healthy growth in the non-CV businesses to including defence, power solutions amongst others.

Ashok Leyland's share price ended 0.32 percent lower from the previous day's close at Rs 231.75 on NSE.