Ashok Leyland Q1FY25 net profit declines 5.79% to Rs 550.65 crore

Ashok Leyland reported a consolidated net profit of Rs 550.65 crore during Q1 FY25- a drop of 5.79%, as against Rs 584.49 crore YoY in Q1FY24. The revenue from the operations stood at Rs 10,124.49 crore during Q1FY25 which is a 4.47% jump when compared with  Rs 9,691.32  crore reported in Q1FY24.

In Q1 FY24 of last year, as per the new tax structure, Ashok Leyland had to restate the deferred tax liability from 35% to 25 %. This meant the company had a one-time gain of Rs 172 crores in deferred tax liability last year in Q1 FY24.

If one takes that effect away of last year, net profit would be at Rs 526 crore for Q1 FY25, translating into a 30% growth. 

Ashok Leyland in a statement, reported a record Q1 with the highest ever CV volumes of 43893 units (versus 41329 units in the previous year), which resulted in the highest Q1 standalone revenue of Rs 8599 core, (as compared to Rs 8189 crore in the previous year). 

The company also reported highest EBITDA and PBT, of Rs 911 crore (as compared to Rs 821 crore in the earlier year) and  Rs 701 crore ( versus Rs 622 crore  in the previous year) respectively. The standalone net profit during Q1FY25 stood at Rs 525.58 crore against Rs 576.42 crore during the corresponding period last year.

Ashok Leyland’s domestic MHCV volume grew by 8 %. with a market share of 30.7%. The bus market share was significantly up at 33.3%. The company’s domestic LCV volume in Q1 FY25 was 15345 units, 4% higher than Q1 of last year (14821 units). The company’s Export volume in Q1 FY’25 was 2324 units, 5% higher than Q1 of last year (2222 units).

Tjhe flagship company of the Hinduja Group added that its power solutions, aftermarket, defence business and the international Operations also contributed strongly to the top line.

Dheeraj Hinduja, Chairman, Ashok Leyland, said, "I am happy to note that the industry continues to maintain the growth momentum, contrary to the expectations at the start of this year. Q1 Industry volumes were at comparable levels of the previous peak of Q1 FY19.

Ashok Leyland’s Q1 performance has beaten all expectations, we have been able to post excellent results with focused market performance while reining in costs. Through our Electric Vehicle subsidiary, Switch Mobility, we are geared to participate in the growing EV market with a clear road map. The launch of IeV3 this month, the second e-LCV launch by Switch, will further strengthen our position in this market." 

Shenu Agarwal, Managing Director and CEO, Ashok Leyland, added, "With the expansion in revenues and efficient cost management we have seen our bottom line improving substantially. The non-CV businesses also have grown substantially. While we continue to expand our market penetration on the back of efficient products and network expansion, we shall remain acutely focused on achieving mid-teen EBITDA in the medium term. This is important for us as we continue to focus on investing in technologies of the future.”