Rough road ahead for Ashok Leyland
- The bright spot is that Ashok Leyland’s market share in the medium & heavy CV segment was up by 70 basis points sequentially to 31.9% in Q2
BENGALURU : For Ashok Leyland Ltd, this financial year is likely to be a notable one in terms of profitability. After four years, the commercial vehicle (CV) maker is on course to clock double-digit Ebitda margin in FY24. In the first half of FY24, the measure stood at 10.7% and the company expects the second half to benefit from the twin tailwinds of better demand and softer commodity costs. Ebitda is short for earnings before interest, tax, depreciation, and amortization. As such, an improving margin performance is one reason that aided the 22% rise in Ashok Leyland’s shares so far in 2023.