Ashok Leyland, a leading commercial vehicle manufacturer, announced a significant increase in its profit after tax to Rs 561 crore in the September quarter of 2023-24, nearly tripling from Rs 199.31 crore in the year-ago period.
The company reported that revenues for the quarter rose to Rs 9,638 crore from Rs 8,266 crore in the previous year. The EBITDA for the quarter also saw a substantial increase to Rs 1,080 crore from Rs 537 crore in the corresponding quarter of the previous fiscal.
Despite challenges, the domestic medium and heavy commercial vehicle sales saw an 18% increase, while light commercial vehicle volume remained stable. Export volumes for the quarter were 4% higher at 2,901 units.
Shenu Agarwal, Managing Director and Chief Executive Officer of Ashok Leyland, expressed optimism for the second half of the year, citing strong demand growth and softer commodity prices. The company also focused on margin enhancement, network expansion, and operational efficiency.
The company also expanded its MHCV range and distribution network, with 47 new touch points added in the northern and eastern parts of the country. Dheeraj Hinduja, Executive Chairman of Ashok Leyland, expressed confidence in the industry’s growth and highlighted the company’s expansion strategy in focus markets, including the Middle East, Africa, and Asia.
In addition, the company is focusing on building capabilities in alternative energy and developing new products and solutions. This positive performance is expected to continue in the coming quarters.