Ashok Leyland shares rise over 7% as Q3 net profit surges 31%

The standalone net profit of the company increased 32% year-on-year (YoY) at ₹762 crore in the third quarter of the current fiscal, compared to ₹575 crore in the same period last year. The company’s net profit stood at ₹770 crore in the preceding September quarter of 2024.

Ashok Leyland’s revenue rose to ₹9,479 crore during the reporting quarter, as against ₹9,273 crore in the corresponding quarter last fiscal year. Additionally, the company witnessed a new high in EBITDA reaching ₹1,211 crore (12.8%), marking the 8th consecutive quarter of double-digit EBITDA percentage.

The vehicle maker had registered a growth of 33% in export volume reaching 4,151 units in Q3 FY25 as against 3,128 units in the same period last year.

"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," said Dheeraj Hinduja, Executive Chairman of Ashok Leyland, while commenting on the company’s performance.

"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.

Ashok Leyland Managing Director & CEO Shenu Agarwal said as compared to Q2, the medium and heavy commercial vehicle (MHCV) market has revived significantly in third quarter and is expected to improve further in the last quarter.

"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," Agarwal said.