Discover how Ashok Leyland share price surges after an impressive financial performance in Q3 FY24, marked by a 60% increase in net profit and strategic investments in sustainable mobility.
Impressive Financial Performance
Ashok Leyland share price surged 4.2% to ₹186.85 apiece in morning trading today following the release of strong financial results for the December quarter (Q3 FY24). This surge brings the stock close to its all-time high of ₹191.50 per share, achieved in August 2023. The company is a flagship of the Hinduja Group and is a backbone in the heavy vehicles manufacturing sector of India.
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Financial Highlights
- The company reported a remarkable 60% year-on-year increase in standalone net profit, reaching ₹580 crore in Q3 FY24, compared to ₹361.34 crore in the same period last year.
- Standalone revenue saw a modest 2.7% year-on-year growth, reaching ₹9,273 crore compared to ₹9,029.7 crore in the previous year’s period.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q3 stood at ₹1,114 crore, marking a significant 40% increase from ₹797 crore reported in the December quarter of FY23.
Strong Operational Performance
- Ashok Leyland share price surge was aided by to increase in commercial vehicle sales volume reaching 138,416 units in the first nine months of FY24.
- Export volume saw a notable 6.5% year-on-year growth in Q3 FY24, reaching 3,128 units compared to 2,936 units in the same period last year.
Market Position and Growth Prospects
- Ashok Leyland maintained its position as the leading bus manufacturer in the country, with robust demand across both medium and heavy commercial vehicle (MHCV) and light commercial vehicle (LCV) segments.
- The company secured orders for over 3,800 buses from state transport undertakings during the quarter, indicating the significant growth potential in the bus market.
Focus on Sustainable Mobility Solutions
- At the recent Bharat Mobility Global Expo in New Delhi, Ashok Leyland initiated the delivery of its first electric 55-ton tractor-trailer and its first 14-ton Boss electric truck, emphasizing its commitment to sustainable mobility solutions.
Financial Health and Strategic Investments
- Debt stood at ₹1,747 crore at the end of Q3 FY24, with a debt-equity ratio of 0.2 times, representing an improvement from the previous quarter.
- The company made a strategic investment of Rs. 662 crores in the current quarter in Optare PLC/Switch, aligning with the growing opportunities in electric light commercial vehicles (ELCVs) and electric buses (EBuses), which the company believes will further enhance its position in the market.
Bhaarat Bulletin’s Shikha Rai, Bimal Dev, and NSE have contributed to the above report