Growth at Ashok Leyland Ltd. faltered in the April–June period of the current financial year but met analysts' estimates, despite recording the highest first-quarter volumes.
Standalone net profit of the truckmaker fell 8.7% year-on-year to Rs 526 crore in the three months ended June, even as revenue rose 5% to Rs 8,599 crore, according to an exchange filing on Thursday.
Analysts polled by Bloomberg had estimated the top line at Rs 8,780 crore and bottom line at Rs 547 crore.
Ashok Leyland Q1 FY25 Highlights (Standalone, YoY)
Revenue up 5% to Rs 8,599 crore (Bloomberg estimate: Rs 8,780 crore).
Ebitda up 11% to Rs 912 crore (Estimate: Rs 968 crore).
Ebitda margin expands 60 basis points to 10.6% (Estimate: 11%).
Net profit down 9.7% to Rs 526 crore (Estimate: Rs 547 crore).
"Ashok Leyland's Q1 performance has beaten all expectations," Chairperson Dheeraj Hinduja said in a statement. "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 roadmap. The launch of IeV3 this month, second e-LCV launch by Switch, will further strengthen our position in this market," Hinduja said.
Ashok Leyland reported a record first quarter with the highest-ever commercial-vehicle volumes of 43,893 units. The domestic volume for medium and heavy commercial vehicles grew 8% and the market share was at 30.7%. The market share for buses was significantly up at 33.3%.
The company's domestic light-commercial-vehicle volume was 4% higher at 15,345 units, while its export volumes was 5% higher at 2,324 units.
Shares of Ashok Leyland were trading 1.31% lower at Rs 229.45 apiece on the NSE after the results were announced, compared to a flat benchmark Nifty at 2:01 p.m.
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