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Informist, Thursday, Aug. 14, 2025

 

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--Ashok Leyland Apr-Jun net profit INR 5.94 bln
--Analysts saw Ashok Leyland Apr-Jun net profit INR 6.05 bln
--Ashok Leyland Apr-Jun net profit INR 5.94 bln vs INR 5.26 bln year ago
--Ashok Leyland Apr-Jun revenue INR 87.25 bln vs INR 85.99 bln year ago
--Ashok Leyland Apr-Jun operating margin 11.11% vs 10.59% year ago
--Ashok Leyland Apr-Jun EBITDA INR 9.70 bln vs INR 9.11 bln year ago
--Ashok Leyland: Aim to achieve EBITDA margin of mid teens in medium term
 

 

By Gopika Balasubramanium

 

MUMBAI - Ashok Leyland Ltd. reported a rather dismal performance for the June quarter, as its net profit growth, albeit in double digits, was the slowest in four quarters. Growth in revenue from operations was also at a three-quarter low. However, its operating margin improved on year.

 

The company's shares jumped shortly after the results were announced. The shares closed at INR 121.96 on the National Stock Exchange, up nearly 2% from Wednesday.

 

The commercial vehicle-maker's net profit for Apr-Jun grew 13% to INR 5.94 billion from INR 5.26 billion a year ago. Analysts had estimated Ashok Leyland's net profit at INR 6.05 billion. The revenue from operations for the quarter rose just 1.5% on year INR 87.25 billion and was marginally lower than expectations of INR 87.75 billion. Sequentially, the company's top line fell nearly 27% and its bottom line declined more than 52%.

 

Ashok Leyland's net profit was also supported by a marginal 0.8% on-year rise in total expenditure to INR 79.80 billion. The only metric to rise in double digits on year under expenses was employee costs. All others saw a mid-low single digit growth.

 

Cost of raw materials and services consumed rose 3% on year to INR 63.87 billion. The company spent INR 4.27 billion under purchase of stock-in-trade. Depreciation and amortisation grew nearly 6% on year to INR 1.83 billion and other expenses rose 5% on year to INR 9.80 billion. Expenses under employee benefits rose the fastest at 11% on year to INR 6.12 billion. On the other hand, finance costs fell 29% on year to INR 418.60 million.

 

The company's earnings before interest, tax, depreciation and amortisation for the quarter ended June rose 6.5% on year to INR 9.70 billion from INR 9.11 billion a year ago. The company's operating margin expanded 52 basis points on year to 11.11%. "Our priority remains achieving mid-teen EBITDA margins in the medium term, while advancing our commitment to future-ready technologies," Shenu Agarwal, managing director and chief executive officer of Ashok Leyland, said in a press release.

 

The board of directors Thursday approved an investment INR 3 billion in the company's wholly-owned arm Ohm Global Mobility Pvt. Ltd. "for business requirements and expansion." Ohm Global is into electric mobility as a service and operates and maintains electric buses and trucks on pay per use model. The company will also invest INR 57 million in its another wholly-owned arm Vishwa Buses and Coaches Ltd. that makes buses and coaches.  End

 

Edited by Nishant Maher

 

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