Ashok Leyland, the Indian flagship of the Hinduja Group, reported more than eight time jump in YoY quarter profits in Q1 FY'24. Net Profits for the quarter stood at Rs 576 crore as against Rs 68 crore in same period last year. Revenue for the quarter stood at Rs 8,189 crore as against Rs 7,223 crore in Q1 FY'23. In the same period Ashok Leyland's domestic MHCV volume grew by 7 per cent and market share grew from 30 per cent to 31.2 per cent. The MHCV truck market share was at 31.7 per cent for Q1FY24 as against 31.1 per cent in the same period last year.
The Company's domestic LCV volume in Q1 FY'24 was 14,821 units which is 3 per cent higher than Q1 of last year (14,384 units).
EBITDA shot up to 10 per cent for Q1 FY24 (Rs 821 crore) as against 4.4 per cent (Rs 320 crore) in Q1 of previous year. Net Debt to Equity stood at 0.2 times at end of Q1'FY24.
The company continued to see strong demand for the modular AVTR range of trucks. The efforts on network expansion also helped the uptick in revenue and market share. In the LCV segment as well, the volumes grew on the back of good market acceptance of our Bada Dost range. The Power Solutions and Aftermarket businesses continued to contribute strongly to the top line of the Company.
Tax expense for the quarter was lower as it considers a one-time deferred tax credit of 172 crore on account of expected transition to lower tax regime in the following financial year.
Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said "We are concurrently intensifying our efforts in international expansion. Through our Electric Vehicle subsidiary, Switch Mobility, we are actively moving towards net zero carbon mobility. The EV market is growing gradually, and we are geared to participating in this growth with a clear road map."
Shenu Agarwal, MD and CEO, Ashok Leyland, added, "With expansion in revenues and efficient cost management we have seen our bottom line improving substantially. While we continue to expand our market penetration on the back of efficient products and expanding the network, we shall remain acutely focused on achieving and sustaining double-digit profitability."
