Leading truck and bus maker Ashok Leyland has posted a net profit of ₹199 crore for the quarter ended September 30, 2022, against a net loss of ₹83 crore in the year-ago quarter.
Revenue from operations grew a whopping 85 per cent at ₹8,266 crore in Q2 of this fiscal when compared with ₹4,458 crore, helped by significant growth in sales of trucks on the back of robust demand in the market.
The company reported an EBITDA of ₹537 crore (6.5 per cent for the September 2022 quarter) when compared with an EBITDA of ₹135 crore (3 per cent in Q2 FY22).
Its domestic medium and heavy commercial vehicle sales rose 113 per cent at 25,475 units compared with 11,988 units in the same period the previous year. “This helped Ashok Leyland achieve market share gains of 9.6 per cent in the quarter and the company achieved a market share of 32 per cent in Q2 of this fiscal,” said a statement.
LCV volumes were higher by 28 per cent at 17,040 units (13,328 units).
“While we will pursue growth, we want to do it profitably and sustainably, the team continues its focus on operating costs and margins. We have been driving our other businesses like aftermarket, power solutions, defense, and digital customer solutions which have contributed increasingly to our revenue,” said Gopal Mahadevan, Director & CFO, Ashok Leyland.
The company’s debt stood at ₹2,677 crore as of September 30, 2022. Debt equity was at 0.37 times when compared with 0.48 times in the year-ago quarter.
“Despite global recessionary trends, the Indian commercial vehicle market continues to grow well, the industry has seen strong volumes in Q2 FYI23 over the same period last year. We see the demand continuing in all segments of trucks and passenger vehicles and we remain confident and optimistic about the future,” said Dheeraj Hinduja, Executive Chairman, Ashok Leyland.