Ashok Leyland's export volumes for the second quarter reached 3,310 units, marking a 14% increase. Ashok Leyland, a subsidiary of the Hinduja Group, announced a 37% year-over-year increase in Profit After Tax (PAT) for the second quarter, reaching INR 770 crore. The company also reported robust EBITDA for the quarter at 11.6% (INR 1,017 crore), compared to 11.2% (INR 1,080 crore) in the same period last year. The growth is attributed to strong performance in the domestic market, particularly in the Medium and Heavy Commercial Vehicle (MHCV) and bus segments, as well as strategic expansion efforts.
Ashok Leyland's MHCV market share
Ashok Leyland’s domestic MHCV market share remains above 31%, reaffirming its leadership position in the segment. Despite a decrease in sales volume compared to the previous year, the company’s second-quarter performance reflects positive trends. The company reported domestic MHCV sales of 25,685 units, down from 29,947 units in the same period last year. The company also highlighted its continued dominance in the bus segment.
LCV segment marks significant growth
Ashok Leyland’s Light Commercial Vehicle (LCV) segment showed notable market share growth in its targeted segments during the first half of the year. LCV volume reached 16,629 units, compared to 16,998 units in the same period last year.
“The Indian economy is expected to perform well in the second half of the year, which would benefit our industry. We remain optimistic about industry prospects for H2, supported by strong macroeconomic fundamentals, resumption of government spending on Capex, and favorable monsoons. Our robust all-round performance in Q2 is driven by our technological and cost leadership. Internationally, we are intensifying our expansion strategy in focus markets such as SAARC, the Middle East, Africa, and Asia. We aim to post our best performance ever during this fiscal year. We continue to invest in new products with alternative fuels, and our Switch platform is doing well, with an order book of nearly 2,000 buses,” stated the company.
Exports
Ashok Leyland's export volumes for the second quarter reached 3,310 units, marking a 14% increase. The company attributes this growth to its expansion strategy in key markets, including SAARC, the Middle East, Africa, and Asia. Ashok Leyland also highlighted strong performance in its Defence, Power Solutions, and Aftermarket businesses, with projections for continued growth in the current fiscal year.
“We remain focused on profitability. We are pleased to have improved our profitability by focusing on product premiumisation, addressing cost compression opportunities, and elevating our customer service standards. Our PAT for Q2FY25 is an all-time high. Our EBITDA margins have improved both sequentially and YoY, making this the seventh consecutive quarter of double-digit EBITDA. We are well on track to achieve mid-teen EBITDA in the medium term,” the company added.
New product launches
Ashok Leyland continues to prioritise innovation and expand its product portfolio. During the second quarter, the company introduced new products across various segments, including Tippers, Buses, Haulage, and LCVs. The company is also focused on expanding its distribution network to reach a wider customer base.
