Ashok Leyland's Q2FY24 net profit surges 2.8 times to Rs 561 crore

Ashok Leyland, the Indian flagship of the Hinduja Group, reported net profit of Rs 561 crore for Q2 FY24 grew 181% over the same period last year. The company's revenues for the quarter stood at Rs 9638 crore, compared to Rs. 8266 crore in Q2 FY'23, posting 17% growth over last year. 

Ashok Leyland’s domestic MHCV volume, at 29,947 units, grew by 18% over Q2 last year in line with industry growth. LCV volumes for Q2 FY’24 at 16998 units are almost the same as Q2 FY’23 (17,040 nunbers.). Export volumes for the quarter (MHCV & LCV) at 2901 units were higher by 4% despite multiple socio-political challenges across the globe.

"While our overall MHCV MS is moving in the right direction, we had a significant increase in our bus market share, making us the No. 1 bus manufacturer in India," the company said in a statement.

 Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said, “We continue to see strong demand in all segments of trucks and passenger vehicles. The industry continues to post strong growth on the back of strong macroeconomic factors, and we are confident that FY’ 24 will see further growth in the second half as well."

"Our robust all-round performance exemplifies the technological and cost leadership of Ashok Leyland. While international business globally is challenged owing to the conflicts across the globe, we are intensifying our expansion strategy in our focus markets of the Middle East, Africa, and Asia. The company continues to build its capabilities in alternative energy and will soon be coming up with some exciting products and solutions.”

Shenu Agarwal, MD and CEO, Ashok Leyland, added, “We have grown in profitability. The second half of the year appears to have twin tail winds of demand growth and softer commodity prices, which should improve the profitability of the industry. For Ashok Leyland, this is the third consecutive quarter of double-digit EBITDA.  There is tremendous focus on margin enhancement, network expansion, operational efficiency, cost optimisation, and the deployment of digital as an enabler for growth and productivity. There is enhanced thrust to grow all non-MHCV businesses as well and we expect to see the benefits of all of this in the coming quarters.”