Ashok Leyland Q2 Results: Profit Beats Estimates As Margin Expands
The commercial vehicle maker's consolidated net profit stood at Rs 526 crore, as compared with a profit of Rs 164 crore last year.
Ashok Leyland Ltd. reported a rise in net profit and beat analysts' estimates in the second quarter aided by higher sales.
The commercial vehicle maker's consolidated net profit stood at Rs 526 crore, as compared with a profit of Rs 164 crore last year, according to its exchange filing on Thursday. That compares with the Rs 379 crore consensus estimate of analysts tracked by Bloomberg.
Ashok Leyland Q2 FY24 Highlights (Consolidated, YoY)
Revenue rose 19% to Rs 11,429 crore (Bloomberg estimate: Rs 6,504.5 crore).
Ebitda grew 83% to Rs 1,871 crore.
Ebitda margin stood at Rs 16.37% versus 10.62%.
The company’s overall sales rose 10% year-on-year to 49,846 units, driven by medium and heavy commercial vehicles. The sales of heavy-duty vehicles jumped 15%, while light commercial vehicle sales rose nearly 2% in the quarter.
"The second half of the year appears to have the twin tailwinds of demand growth and softer commodity prices which should improve the profitability of the industry," Shenu Agarwal, managing director and chief executive officer of the company, said in a statement.
This is the third consecutive quarter of double-digit Ebitda for Ashok Leyland, due to focus on operational efficiency, cost optimisation and deployment of digital to enhance productivity, he said.
Agarwal has long held that commercial vehicle industry's margin needs to rise to ensure investments in vehicles powered by cleaner fuels.
While International businesses globally are challenged owing to the conflicts across the globe, the company is intensifying expansion strategy in focus markets of Middle East, Africa and Asia, said Dheeraj Hinduja, executive chairman at Ashok Leyland.
Shares of Ashok Leyland ended 1.7% lower after the results were announced, as compared with a 0.25% fall in the benchmark Nifty 50.
