Ashok Leyland, India’s second-largest medium and heavy commercial vehicle manufacturer, is set to report its June quarter results around 5 pm today. The Hinduja Group flagship is expected to see a 10 per cent year-on-year (y-o-y) rise in revenue, with an anticipated EBITDA margin of over 10 per cent for Q1 of this fiscal year. However, analysts predict only a slight increase in net profit.

Revenues are projected to grow by 10 per cent y-o-y to ₹89.8 billion, driven by a 6 per cent increase in volumes and a 3 per cent improvement in realisation. This improvement in realisation is attributed to better net pricing and a favourable mix of non-auto revenues, including spares and defense segments, according to Mumuksh Mandlesha, Research Analyst at Anand Rathi Institutional Equities.

The EBITDA margin is expected to expand by 80 basis points y-o-y to 10.8 per cent, primarily due to a higher gross margin resulting from improved net pricing.

The profit after tax is anticipated to rise by just 1 per cent y-o-y to ₹5.9 billion. This modest growth is attributed to a lower tax base last year, with the tax rate expected to be 25.2 per cent in Q1 FY25, compared to just 7.3 per cent in Q1 FY24, according to Mandlesha.

During the June quarter, the company’s medium and heavy truck sales declined by 3 per cent to 20,602 units (from 21,209 units in the June 2023 quarter). However, bus volumes surged by 82 per cent to 5,612 units (up from 3,077 units), and LCV volumes increased by 4 per cent to 15,345 units (up from 14,821 units).

In Q1 of FY24, the company reported a net profit of ₹5.8 billion, revenue of ₹81.9 billion, and an EBITDA margin of 10 per cent.

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