Ashok Leyland logs Q1 net profit of ₹68 crore

Commercial vehicle manufacturer Ashok Leyland Ltd. (ALL) posted standalone net profit of ₹68 crore for the first quarter against a loss of ₹282 crore in the year-earlier period.

Revenue increased more than twofold to ₹7,223 crore, ALL said in a statement.

ALL’s domestic M&HCV volume grew at 189% and market share from 27% to 30%. Truck market share stood at 31.1% against 26.2%.

“The industry has seen strong volume growth in Q1, and we expect this trend to continue going forward,” said Dheeraj Hinduja, executive chairman.

While expecting the growth momentum to continue for the next few quarters, he said the commodity prices are beginning to decline and the benefits of this will be seen in the coming quarters.

Asserting that ALL is focused on market performance while reining in costs, he said: “Our digital-first approach is helping ALL customers increase their business efficiency and we are continuing to expand our offerings.”

“With expansion in revenues and efficient cost management, we have seen our bottom line improving. The softening of commodity prices, in particular for steel, should impact our margins positively,” said Gopal Mahadevan, director and CFO.

Later, talking to reporters, Mr. Hinduja said that the company had lined up a capex of ₹750 crore each for the next two years and $150-200 million for EV subsidiary Switch Mobility.

According to him, the company was close to finalising strategic investors for Switch Mobility and a formal announcement was just a few weeks away.

Mr. Mahadevan said they were studying at the moment whether there should be a new platform for Light Commercial Vehicles.