Ashok Leyland Q3 Results: Net profit improves 32% YoY to ₹762 crore; margins stay in double digits for 8th quarter

Shares of Ashok Leyland, the Indian flagship of the Hinduja Group, surged 7% in today's trade, February 12, with most of the gains coming after the company reported its December quarter performance, surpassing street estimates on all parameters.

The company reported a 32% year-on-year (YoY) increase in its standalone net profit, reaching ₹762 crore in the third quarter of the current fiscal, compared to ₹575 crore in the same period last year. In the preceding September quarter, the net profit stood at ₹770 crore.

The company's standalone revenue grew 2.7% YoY to ₹9,478 crore, up from ₹9,273 crore in the year-ago period.

On the operational front, the company posted a record-high Q3 EBITDA of ₹1,211 crore, with margins at 12.8%, marking the eighth consecutive quarter of double-digit margins. In the same period last year, EBITDA stood at ₹1,114 crore, with margins at 12%, according to the company's earnings report.

The commercial vehicle maker achieved an export volume of 4,151 units in Q3 FY25 as against 3,128 units in the same period last year, registering a growth of 33%.

Switch gears up for new product launches

Commenting on the December quarter numbers, Dheeraj Hinduja, Executive Chairman, Ashok Leyland, 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. Switch has a healthy order book and has plans to come out with a series of products in the next 12 months," he added.

Shenu Agarwal, MD & CEDI, Ashok Leyland, added, "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."

Earnings Impact

Shares of Ashok Leyland witnessed sharp gains following the Q3 earnings announcement, defying the weak broader market mood. The stock traded 6.95% higher at the day's high of ₹217.75 apiece around 2.45 pm on the BSE.

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