Ashok Leyland Witnesses All-Time High Q3 Revenue And Profits In Financial Year 2025
Modified On Feb 12, 2025 04:34 PM
Ashok Leyland achieved an all-time high net profit of Rs 762 Crore during the third quarter of FY25 compared to Rs 580 Crore in Q3 FY24, showing a 31% YoY growth.
Key Highlights
- Ashok Leyland sold 26,838 units in Q3 FY25 compared to 27,080 units in Q3 FY24, indicating a 1% YoY sales decline.
- With 10 bps increased market share, the company holds over 30% of the domestic MHCV market in India.
- The company's SCV volume in the domestic market had a 9% YoY sales reduction with sales of 14,872 units in Q3 due to new products introduced by its competitors.
On February 12, 2024, Ashok Leyland, the Indian flagship of the Hinduja Group, released the company's quarterly financial results for the third quarter of the current financial year that concludes on December 31, 2024. The company experienced a successive Q3 record in line with its focus on profitable business growth. It achieved an all-time high net profit of Rs 762 Crore during the third quarter compared to Rs 580 Crore in Q3 FY24, showing a 31% YoY growth. Read on.
Related Link: Ashok Leyland Registers 37 Percent YoY Growth Of Standalone Profit After Tax In Q2FY25
Ashok Leyland Q3 FY25 Financial Performance
Ashok Leyland had double-digit percentage EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the eighth consecutive quarter with an all-time high Q3 EBITDA of Rs 1211 Crore (12.8%) compared to Rs 1114 Crore (12%) in Q3 FY24. With Q3 FY25 revenues of Rs 9,479 Crore, Ashok Leyland achieved an all-time high Q3 revenue growth of 2% YoY compared to Q3 FY24’s Rs 9,273 Crore.
In consolidated financial results, Ashok Leyland recorded a revenue growth of 8% YoY with revenue of Rs 11,995 Crore in Q3 FY25 compared to quarterly revenue of Rs 11,066 Crore in Q3 FY24. The company’s PAT (Profit After Tax) was Rs 820 Crore during the third quarter of the financial year 2024-25, showing a 35% YoY net profit growth compared to Rs 609 Crore net profit in Q3 FY24.
Ashok Leyland MHCV Domestic Sales In Q3 FY25
Considering the medium and heavy commercial vehicle (MHCV) industry sales volume, the Indian market saw a growth of 10% sequentially. While the industry sales volume in Q2 FY25 was 12% YoY down, Q3 FY25 highlighted the major improvement in the MHCV industry and still the industry has seen the early signs of positive momentum in Q4.
Over 30% of the domestic MHCV market is still held by Ashok Leyland in India. Additionally, the company has continued to dominate the bus segment in the country. Including the MHCV defence sales volumes, the company sold 26,838 units in Q3 FY25 compared to 27,080 units sold in Q3 FY24, indicating a 1% YoY sales decline. The brand’s market share went up by 10 bps.
Ashok Leyland SCV Domestic Sales In Q3 FY25
The Indian small commercial vehicle (SCV), weighing between 2 tonnes and 4 tonnes, industry registered a 4% YoY sales growth with sales of 86,592 units in Q3 FY25. Due to new products launched by the competitors of Ashok Leyland in Q3, the sales volume of the company’s SCV in the domestic market observed a 9% YoY sales drop with sales of 14,872 units.
In order to reach a previously untapped customer niche, Ashok Leyland has introduced Saathi to enter into the entry-level LCV segment. The brand has claimed that its SCV sales volume and market share in this segment should normalise in the next 2 quarters.
Official Insights From Ashok Leyland
Speaking on the financial performance during Q3 FY25, Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said, “The steady progress we are making in profitability is backed by products that deliver superior performance coupled with robust customer engagement. Sales in international markets are showing strong growth, and we expect this momentum to accelerate with the launch of new products.”
He further added, “I compliment the management and all our team for delivering a record-breaking Q3 for the second year in a row. We are also continuing to invest in battery electric and alternate fuel products to maintain our technology leadership position. Switch has a healthy order book and has plans to come out with a series of products in the next 12 months.”
Shenu Agarwal, MD and CEO, Ashok Leyland, added, “Relative to Q2, the MHCV market has revived significantly in Q3, and is expected to improve further as we enter the last quarter. Our focus remains on profitable growth through product premiumisation, cost leadership, better service reach and enhanced value-added services. Non-CV businesses have done well and offer more headroom for growth. We remain optimistic about the growth of the CV industry in the medium and long term as macroeconomic factors continue to be favourable.”
Ashok Leyland Export In Q3 FY25
In Q3 of FY25, Ashok Leyland’s export volume increased by 33% YoY to 4,151 units from 3,128 units in the same period the previous year. The company’s export volume was significantly contributed by GCC (Gulf Cooperation Council) countries during this quarter. Now, the company is dealing with SAARC and ASEAN countries to boost its exports. With net cash of Rs 958 Crore at the end of the quarter, it became cash positive, compared to net debt of Rs 1747 Crore at the end of Q3 of FY24.
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