Earnings Review
Ashok Leyland Jan-Mar PAT, sales highest in over 10 years
This story was originally published at 18:58 IST on 23 May 2025
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--Ashok Leyland Jan-Mar net profit INR 12.46 bln
--Analysts saw Ashok Leyland Jan-Mar net profit INR 11.08 bln
--Ashok Leyland Jan-Mar net profit INR 12.46 bln vs INR 9.00 bln year ago
--Ashok Leyland Jan-Mar revenue INR 119.07 bln vs INR 112.67 bln year ago
--Ashok Leyland board OKs 1-for-1 bonus share issue
--Ashok Leyland FY25 net profit INR 33.03 bln vs INR 26.18 bln year ago
--Ashok Leyland FY25 revenue INR 387.53 bln vs INR 383.67 bln year ago
--Ashok Leyland Jan-Mar operating margin 15.04% vs 14.13% year ago
--Ashok Leyland Jan-Mar EBITDA INR 17.91 bln vs INR 15.92 bln year ago
--Ashok Leyland generated cash of INR 32.84 bln in Jan-Mar
--Ashok Leyland: Have cash surplus of INR 42.42 bln as on Mar 31
--Ashok Leyland: More confident of gaining mkt share, improving realisation
By Arya S. Biju
MUMBAI – Ashok Leyland Ltd. reported a strong set of numbers for the March quarter, with the company posting its highest net profit and sales in over 10 years. The company's bottom line for the quarter was driven by a double-digit on-year fall in tax expenses and a decline in input costs.
The automotive manufacturer reported a consolidated net profit of INR 12.46 billion, up over 38% on year and beating analysts' estimate of INR 11.08 billion. This marked the third consecutive quarter of on-year growth in the bottom line for the company after reporting a decline in the first quarter of the financial year 2024-25 (Apr-Mar).
Its revenue for the quarter rose nearly 6% on year to INR 119.07 billion, but failed to meet analysts' view of INR 121.67 billion. This is the second straight quarter of on-year growth in the company's top line after it fell over 9% in the September quarter. Sequentially, its net profit rose nearly 64% and revenue grew 26%.
Shares of the company, which initially rose 2% after the announcement of the results, ended off highs at INR 239.61 on the National Stock Exchange, up 0.3% from the previous close. The company announced its March quarter earnings towards the close of the day's session.
Raw material costs, which account for nearly three-fourths of the company's total expenses, fell 1.6% on year to INR 73.72 billion. Ashok Leyland's other expenses rose 3% on year to INR 10.61 billion and employee benefit expenses increased 18% on year to INR 6.52 billion. The company's total expenditure for the quarter was INR 103.42 billion, up over 4% on year. The tax expense for the quarter fell 18% on year to INR 4.11 billion.
For the financial year ended March, the company reported a net profit of 33.03 billion, up 26%. Its revenue for the year was INR 387.53 billion, up marginally from INR 383.67 billion reported in the previous year.
The company's earnings before interest, tax, depreciation, and amortisation for the quarter rose over 12% on year to INR 17.91 billion. For the full year, the company reported an EBITDA of INR 49.31 billion, up over 7% from last year. The company's operating margin for the quarter was 15.04%, up from 14.13% a year ago. The company ended the year with a net cash surplus of INR 42.42 billion as against the net debt of INR 890 million at the end of the previous year. Cash generated during the quarter was INR 32.84 billion.
Revenue from commercial vehicle sales for the quarter was INR 129.27 billion, up from INR 121.47 billion in the year-ago quarter. Revenue from this segment accounted for 88% of the consolidated revenue of INR 146.96 billion. Revenue from the financial services segment for the quarter was INR 17.69 billion, up from INR 13.96 billion reported a year ago.
The overall commercial vehicle volume was 195,093 units in FY25, close to the previous high of 197,366, Ashok Leyland said in a press release. During the year, medium and heavy commercial buses recorded the highest ever volume of 21,249 units. Export volume for the year was 15,255 units, up 29% over the previous year. The company also saw impressive growth in power solutions and defence businesses, it said. "We are continuing on our premiumisation journey with a high focus on delivering exceptional value to our customers. We are now more confident than ever in our ability to gain market share and further improve our price realisation," Shenu Agarwal, managing director and chief executive officer of the company, said in the press release.
Along with the March quarter earnings, the company announced a bonus issue of one equity share of face value INR 1 each for every one held in the company. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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