Ashok Leyland Q1 Results: Profit rises multifold to Rs 576 crore, revenue up 14% YoY

Ashok Leyland on Friday reported its net profit for the first quarter ending June 2023 jumped 8 times to Rs 576.4 crore. It earned a net profit of Rs 68.05 crore in the same quarter last year.

Its revenue from operations during the reporting quarter surged 13.5% year-on-year (YoY) to Rs 8,152 crore as against Rs 7,189.3 crore in the same quarter a year ago.

Other income during the quarter rose to Rs 37.3 crore as against Rs 33.5 crore in the previous year period. The company's total income rose 13.4% YoY to Rs 8,189.3 crore for the June quarter. The same was Rs 7,222.8 crore in the same quarter of last year.


During the quarter EBITDA surged 10% (Rs 821 crore) as against 4.4% (Rs 320 crore) in Q1 of the previous year. Net Debt to Equity stood at 0.2 times at the end of Q1FY24.

In the same period, Ashok Leyland's domestic MHCV volume grew by 7% and its market share grew from 30% to 31.2%. The MHCV truck market share was at 31.7% for Q1FY24 as against 31.1% in the same period last year.

The Company's domestic LCV volume in Q1 FY'24 was 14821 units, 3% higher than 14384 units in Q1 of last year.
"The Company continued to see strong demand for the modular AVTR range of trucks. The efforts on network expansion also helped the uptick in revenue and market share. In the LCV segment as well, the volumes grew on the back of good market acceptance of our Bada Dost range. The Power Solutions and Aftermarket businesses continued to contribute strongly to the top line of the Company," Ashok Leyland said in an exchange filing.

Tax expense for the quarter was lower as it considers a one-time deferred tax credit of Rs 172 crore on account of the expected transition to lower tax regime in the following financial year.

"We are concurrently intensifying our efforts in international expansion. Through our Electric Vehicle subsidiary, Switch Mobility, we are actively moving towards net zero carbon mobility. The EV market is growing gradually, and we are geared to participating in this growth with a clear road map," Dheeraj Hinduja, Executive Chairman of Ashok Leyland said.

Following the Q4 FY23 results, shares of Ashok Leyland were trading 3% higher at Rs 181 on BSE. On a year-to-date basis, the stock has surged 21%, while it has risen 10% in the last one month.

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