What Led Ashok Leyland To Clock a Net Profit Of INR 561 Crore In Q2? The significant increase in the bus market share of the company, making it the top bus manufacturer in India, plays an important role in the increased profit
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Ashok Leyland clocked net profit of INR 561 crore for the September quarter. The second half of the year appears to have the twin tail winds of demand growth and softer commodity prices which should improve the profitability of the industry. The profit after tax (PAT) was a 182 per cent (YoY) surge riding on strong sales. Ashok Leyland's domestic MHCV volume stood at 29,947, up 18 per cent over Q2 last year in line with Industry growth. LCV volumes for Q2 FY'24 stood at 16,998.
All other businesses posted good growth in the current quarter. The company expanded its MHCV range by launching new products in Tipper, Tractor and MAV categories. The focus on expansion of the distribution network continued with further addition of 47 touch points in the quarter – especially in the Northern and Eastern parts of the country. "While our overall MHCV MS is moving in the right direction, we had a significant increase in our bus market share making us the no. one bus manufacturer in India," the company said in its statement.
Export volumes were higher by 4 per cent despite macroeconomic headwinds. While International business globally is challenged owing to the conflicts across the globe, Ashok Leyland is intensifying expansion strategy in the focus markets of Middle East, Africa and Asia. "The Company continues to build its capabilities in alternative energy and shall be soon coming up with some exciting products and solutions. We continue to see strong demand in all segments of trucks and passenger vehicles. The industry continues to post strong growth, on the back of strong macroeconomic factors and we are confident that FY' 24 will see further growth in the second half as well," said Dheeraj Hinduja, Executive Chairman, Ashok Leyland.
Revenue from operations rose 17 percent to INR 9,638 crore in the quarter from INR 8,266 crore in the same quarter last fiscal. EBITDA for the quarter was INR 1, 080 crore as against INR 537 crore in Q2 FY'23. Shenu Agarwal, MD & CEO, Ashok Leyland, added, "For Ashok Leyland, this is the 3rd consecutive quarter of double-digit EBITDA. There is tremendous focus on margin enhancement, network expansion, operational efficiency, cost optimization and deployment of Digital as an enabler for growth and productivity. There is enhanced thrust to grow all non-MHCV businesses as well and we expect to see the benefits of all of this in the coming quarters"