Ashok Leyland shares surge over 4% after company posts 61% YoY jump in net profit
Shares of Ashok Leyland, the Indian flagship of the Hinduja Group, surged 5% to hit a record high after reporting a 60.5% YoY rise in net profit for Q3 FY24.
Shares of Ashok Leyland, the Indian flagship of the Hinduja Group, zoomed 4.2% to ₹186.85 apiece in today's morning deals after the company posted a strong set of numbers for the December quarter (Q3 FY24). This surge has brought the stock to trade near its all-time high level of ₹191.50 apiece, touched on August 2023.
On Monday, the company reported a 60% YoY jump in its standalone net profit to ₹580 crore in the third quarter of the current fiscal. Its net profit stood at ₹361.34 crore in the year-ago period. The company's standalone revenue increased by 2.7% YoY to ₹9,273 crore against ₹9,029.7 crore in the year-ago period.
Its EBITDA stood at ₹1,114 crore in Q3, an 40% jump compared to an EBITDA of ₹797 crore during the December quarter of FY23.
The commercial vehicle sales volume increased significantly to 1,38,416 units in the first nine months of FY24. The company also performed well in terms of exports.
Despite global headwinds, Ashok Leyland's export volume increased by 6.5% YoY to 3128 units in Q3 FY24 against 2936 units in the same period last year, registering a growth of 6.5%.
"The company continued to see strong demand for its products both in the MHCV and LCV segments, holding its position as the lead manufacturer of buses in the country. During the quarter, the company garnered orders for more than 3800 buses from state transport undertakings. The bus market continues to grow significantly and is expected to bolster overall industry volumes," the company said in its earnings report.
In the recently held Bharat Mobility Global Expo at New Delhi, the company commenced delivery of its first electric 55T tractor-trailer and its first 14T Boss electric truck.
On the debt levels, the company said that its debt stood at ₹1,747 crore at the end of Q3 FY24, with debt-equity at 0.2 times. This represents an improvement from the previous quarter, where the ratio was 0.3 times.
Also Read: FPIs find stability in Indian debt amid equity challenges; what's behind the inflows into bonds?
Furthermore, the company made a strategic investment of Rs. 662 crore in the current quarter into Optare PLC/Switch. This move aligns with the growing prospects of electric light commercial vehicles (eLCVs) and electric buses (eBuses), which the company believes will continue to strengthen.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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