Ashok Leyland , one of India's leading commercial vehicle manufacturers, has reported a stellar performance for the second quarter, showcasing strong growth across key financial metrics and business segments.

Financial Highlights

The company achieved record quarterly EBITDA of Rs. 1,162.00 crores, marking a significant 14.2% year-on-year increase. Revenue for Q2 stood at Rs. 9,588.00 crores, up 9.3% compared to the same period last year. This robust performance was driven by strong showings across multiple business segments, including MHCV trucks, exports, and aftermarket services.

Key Performance Indicators

Business Segment Performance

• MHCV Trucks: Domestic volume reached 21,647 units
• MHCV Buses: 4,660 units sold
• LCV: Domestic volume of 17,697 units, up 6.4% Y-o-Y
• Exports: Volume of 4,784 units, a substantial 45% Y-o-Y increase

Market Share and Strategic Developments

Ashok Leyland has maintained a strong market position, with its domestic MHCV market share at 31% for H1, representing a gain of 50 basis points over the previous year. The company's LCV Vahan market share stood at 13.2%, up by 0.9% year-on-year.

The company announced several strategic initiatives, including:

1. Expansion into battery manufacturing
2. Launch of new high-horsepower truck models (320 HP and 360 HP)
3. Continued focus on expanding its non-diesel portfolio with electric and alternative fuel vehicles

Financial Position

Ashok Leyland maintains a positive cash position of approximately Rs. 1,000.00 crores, reflecting a significant improvement from the previous year. The company's board has recommended an interim dividend of Re. 1.00 per share, underscoring its strong financial performance and positive outlook.

Industry Outlook

The commercial vehicle industry is showing signs of recovery, with the MHCV industry growing by 4% in Q2 and the LCV industry in the 2-4 ton category growing by 13%. The recent GST rate reduction from 28% to 18% for commercial vehicles is expected to further stimulate demand in the sector.

Management Commentary

Shenu Agarwal, Managing Director and CEO of Ashok Leyland, commented on the results: "We believe we have had a reasonably good Q2 and H1, hopefully meeting or surpassing your expectations. We will continue to make our best efforts to progress on our strategic goal of delivering profitable growth and reach mid-teen EBITDA in the mid-term."

Ashok Leyland's strong performance in Q2 demonstrates its resilience and strategic positioning in the commercial vehicle market. With a focus on innovation, market expansion, and financial prudence, the company appears well-positioned to capitalize on the growing demand in the sector and maintain its leadership position in the industry.

Ashok Leyland , the Indian flagship of the Hinduja Group, has reported strong financial results for the second quarter, with profit before tax (PBT) growing 23% year-over-year to Rs 1,083 crore. The company also announced a 100% interim dividend of Rs 1 per share.

Key Financial Highlights

• Profit after tax (PAT) reached Rs 771 crore
• EBITDA margin improved to 12.1% from 11.6% in the same quarter last year
• Revenue from operations increased to Rs 9,588.18 crore, up from Rs 8,768.83 crore in the previous year's corresponding quarter

Segment Performance

Both the Medium and Heavy Commercial Vehicle (MHCV) and Light Commercial Vehicle (LCV) segments witnessed positive growth:

• MHCV volumes increased by 3% year-over-year to 26,307 units
• LCV volumes grew by 6% to 17,697 units
• The bus industry continued its growth trend

Ashok Leyland maintained its market leadership in the bus segment and improved its domestic market share in the MHCV segment, which remains over 30%.

Export and Other Business Segments

The company reported growth in exports, with volumes reaching 4,784 units, a 45% increase year-over-year. The Defence, Power Solutions, and Aftermarket businesses also continued to perform well.

Product Expansion and Distribution

During the quarter, Ashok Leyland expanded its product lineup by launching new offerings in the Tipper, Bus, Haulage, and LCV segments. The company's distribution network expansion is progressing ahead of schedule.

Management Commentary

Mr. Dheeraj Hinduja, Chairman of Ashok Leyland, commented on the results: "We continue to deliver profitable growth, driven by continuing demand. Our robust all-round performance symbolizes the competitiveness of our products and strong customer focus. In the International business, we are intensifying our expansion strategy in our focus markets of Middle East, Africa, and SAARC."

Mr. Shenu Agarwal, Managing Director & CEO, added: "We continue to see stable demand in all segments of trucks and buses. The industry has posted growth, albeit modest, and we are anticipating to witness better growth in the second half. Ashok Leyland has achieved its eleventh consecutive quarter of double-digit EBITDA. Our focus on profitability is reflected in record PAT for the quarter and higher EBITDA margins, both sequentially and year-on-year."

Future Outlook

The management expressed confidence in the company's positioning to achieve its mid-teen EBITDA goal in the medium term. They also highlighted that margin expansion is being driven by product premiumization, network growth, operational efficiency, cost optimization, and digital enablement.

Ashok Leyland's strong performance in the second quarter, coupled with its strategic initiatives and positive industry outlook, positions the company well for continued growth in the commercial vehicle sector.