Shares of Ashok Leyland, a leading commercial vehicle maker and the Indian flagship of the Hinduja Group, jumped nearly 7% during intraday trade after the company reported its highest ever net profit of ₹762 crore in the December quarter.
The company’s standalone net profit in the third quarter of the current fiscal year rose 32% year-on-year to ₹762 crore compared to ₹575 crore in the same period last year. The company’s net profit in the previous September quarter of 2024 was ₹770 crore.
Ashok Leyland’s revenue rose to ₹9,479 crore in the quarter under review compared to ₹9,273 crore in the same quarter of the previous fiscal. 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 automaker had also recorded a 33% growth in export volumes reaching 4,151 units in Q3 FY25 against 3,128 units in the same period last year. Commenting on the company’s performance, Dheeraj Hinduja, Executive Chairman, Ashok Leyland said, “The steady progress we are making in profitability is supported by products that offer superior performance as well as strong customer engagement.
International markets are witnessing strong sales growth, and we expect this momentum to accelerate with the launch of new products.” He added, “We are also continuing to invest in battery electric and alternative fuel products to maintain our technology leadership position. Switch has a healthy order book and plans to come out with a range of products over the next 12 months.”
Shenu Agarwal, Managing Director and CEO, Ashok Leyland, said the medium and heavy commercial vehicle (MHCV) market improved significantly in the third quarter as compared to the second quarter and is expected to improve further in the final quarter. “The MHCV market improved significantly in the third quarter as compared to the second quarter and is expected to improve further in the final quarter.
Our focus remains on profitable growth through product premiumisation, cost leadership, improved service reach and enhanced value-added services. Non-CV businesses have performed well and offer further scope for growth. We remain optimistic about CV industry growth in the medium and long term as macroeconomic factors remain favourable,” Agarwal said.
