Ashok Leyland, the Indian flagship of the Hinduja Group, achieved its highest ever commercial vehicle (CV) volumes of 43,893 units, resulting in a record revenue of INR 8,599 crore, an EBITDA of INR 911 crore, and a PBT of INR 701 crore for Q1 FY25.
Increased volumes and strong contributions from non-CV businesses like power solutions, aftermarket, Defence, and international operations fuelled this growth.
Ashok Leyland's domestic medium and heavy commercial vehicle (MHCV) volume grew by 8%, with a market share of 30.7%. The bus segment also saw a considerable increase in market share at 33.3%. The company's domestic light commercial vehicle (LCV) volume in Q1 FY25 was 15,345 units, 4% higher than the previous year's Q1 volume of 14,821 units. Additionally, export volume for Q1 FY25 stood at 2,324 units, marking a 5% rise from last year’s 2,222 units.
The company's EBITDA margin improved to 10.6% for Q1 FY25, up from 10.0% in the previous year. The net debt to equity ratio was maintained at a low 0.1 at the end of Q1 FY25. Strong demand across all business units was a significant driver of these results. Efforts in product and network expansion also contributed to the uptick in revenue and market share.
Dheeraj Hinduja, Chairman of Ashok Leyland, said, “I am happy to note that the industry continues to maintain the growth momentum, contrary to the expectations at the start of this year. Q1 industry volumes were at comparable levels of the previous peak of Q1 FY19. Ashok Leyland’s Q1 performance has beaten all expectations; 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 road map. The launch of IeV3 this month, the second e-LCV launch by Switch, will further strengthen our position in this market.”
Shenu Agarwal, Managing Director & CEO of Ashok Leyland, added, “With expansion in revenues and efficient cost management we have seen our bottom line improving substantially. The non-CV businesses also have grown substantially. While we continue to expand our market penetration on the back of efficient products and network expansion, we shall remain acutely focused on achieving mid-teen EBITDA in the medium term. This is important for us as we continue to focus on investing in technologies of the future.”
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