Ashok Leyland Q1 Results: Net profit declines 8.7% to ₹526 crore, revenue grows 5%

Ashok Leyland on July 25 reported its financial results for the first quarter of FY25, showcasing a mixed performance. India’s second-largest medium and heavy commercial vehicle manufacturer's EBITDA saw a notable rise of 11.2 per cent, reaching ₹912 crore compared to ₹820 crore earlier. This improvement led to a margin increase of 10.6 per cent from the previous 10 per cent.

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

Despite these gains, the net profit of Ashok Leyland fell by 8.7 per cent, totalling ₹526 crore, down from ₹576 crore in the previous quarter.

Ashok Leyland Chairman Dheeraj Hinduja said, “I am happy to note that the industry continues to maintain the growth momentum, contrary to the expectations at the start of this year. Q1 industry volumes were at comparable levels of the previous peak of Q1 FY19. 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. Through our electric vehicle subsidiary, Switch Mobility, we are geared to participate in the growing EV market with a clear road map. The launch of IeV3 this month, the second e-LCV launch by Switch, will further strengthen our position in this market.”

Ashok Leyland share price was trading in green, up 0.13 per cent, at ₹232.75, on July 25, at 1:23 pm, on BSE.

The company in a statement told Mint that the profit decline was due to one-time tax implication of an exceptional item (EI).

"The efforts on product and network expansion helped the uptick in revenue and market share," the company said in its exchange filing.

"While we continue to expand our market penetration on the back of efficient products and network expansion, we shall remain acutely focused on achieving midteen EBITDA in the medium term. This is important for us as we continue to focus on investing in technologies of the future," said Shenu Agarwal, MD and CEO of Ashok Leyland.