The shares of Ashok Leyland jumped nearly 8 percent on February 12 after the company reported a 36 percent on-year surge in its net profit to Rs 762 crore for the quarter which ended on December 31, 2024. The shares closed at Rs 219.60 apiece.
Ashok Leyland released its results for the third quarter (Q3) of the current financial year (FY25) on February 12. It reported revenue from operations at Rs 11,995 crore. This marks an increase of over 8 percent from the Rs 11,066 crore revenue from operations reported in the corresponding quarter of the previous financial year.
The company said it recorded an all-time high EBITDA level of Rs 1,211 crore during the reported quarter. Its EBITDA margin stood at 12.8 percent, marking the eighth consecutive quarter when the metric remained in double digits.
Ashok Leyland said it has maintained its market leadership in the bus segment. Its market share in medium & heavy commercial vehicles (MHCV) continued to be over 30 percent.
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Speaking about the Q3 results, Ashok Leyland Executive Chairman Dheeraj Hinduja 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."
The company's Managing Director and CEO Shenu Agarwal said, "Relative to Q2, the 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 premiumization, cost leadership, better service reach and enhanced value-added services. Non-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 favorable."
Despite the surge in stock price, Ashok Leyland shares are currently trading nearly 17 percent lower than their 52-week-high level of Rs 264.7 apiece. The stock however is 39 percent higher than its 52-week-low level of Rs 157.65 apiece.
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