Ashok Leyland PAT up 90% in FY24 as operating margin improves

Earnings before interest, taxes, depreciation and amortization (EBITDA) margin, or operating profit margin, for Ashok Leyland improved to 12% from 8.1% in the year-ago period.
Ashok Leyland logo
Ashok Leyland logo(Photo | PTI)

NEW DELHI : Sharp improvement in EBITDA margin helped Hinduja Group flagship company Ashok Leyland to report a 90% annual jump in profit in the financial year 2024.

Clocking its highest-ever profit after tax (PAT) in a single year, the commercial vehicle (CV) major’s net profit in FY24 came at `2,696 crore against Rs 1,359 crore in FY23. In FY24, Consolidated revenue from operations was at Rs 45,790 crore as against Rs 41,672 crore in FY23, it said on Friday.

Earnings before interest, taxes, depreciation and amortization (EBITDA) margin, or operating profit margin, for Ashok Leyland improved to 12% from 8.1% in the year-ago period. This improvement was achieved by better price realisations, lower commodity prices, and strong margins in non-truck businesses.

For the quarter ending March, it reported a 16.73% increase in net profit to Rs 934 crore as against Rs 800 crore in the same period of the previous fiscal. Consolidated revenue from operations in the quarter under review stood at Rs 13,577.58 crore as against Rs 13,202.55 crore in the year-ago period. Operating margin improved to 14.1% in the quarter from 11% in the year-ago quarter. “Whether it is revenues, EBITDA margins or profits, we have achieved all-time high numbers. This gives us even more strength to move towards our medium-term goal of mid-teen EBITDA,” said Shenu Agarwal, MD & CEO, Ashok Leyland.

It will expand its presence in light commercial vehicle (LCV) segment. Ashok Leyland has proposed a capex of Rs 500-700 crore in FY25. “Currently, we address half of LCV market in India. We are looking to expand our LCV product portfolio to cover at least 70-80% in the next few years,” said Dheeraj Hinduja, Chairman of Ashok Leyland.

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