Driven by efficiency in sourcing, stringent cost-cutting measures and the performance of its allied businesses including defence, parts, power solutions etc, made Ashok Leyland, the Indian flagship of the Hinduja Group, to report a revenue of INR 38,367 crore in FY2024, witnessing 6% growth over previous year.
The operating profit was at INR 3,886 crore during the year, against INR 2,026 crore growing by 92% while profit after tax (PAT) grew by 90% to INR 2,618 crore. FY24 EBITDA was at 12.0% as against 8.1% last year. Net debt at the end of FY24 was at INR 89 crore.
In Q4FY24 the company reported a record EBITDA of 14.1%, amounting to INR 1,592 crore. This is a significant increase compared to the 11.0% (INR 1,276 crore) recorded during the same period last year. The company also posted a 38% growth in Operating PBT, reaching INR 1,471 crore compared to INR 1,068 crore in Q4FY23. PAT for the quarter was INR 900 crore, up from INR 751 crore in the previous year. Cash generated during the quarter was INR 1,658 crore.
Commercial Vehicle (CV) Volumes nearly matched the previous high, with 194,553 units sold. The company gained 5.8% market share in the M&HCV Bus segment while it maintained its LCV volumes despite a reduction in industry volumes, making it the number two brand in the 2-3.5T category. Besides, the export volumes increased by 5% despite challenging market conditions.
The company's performance is attributed to its superior product offerings and expanding sales and service network, with 246 new outlets opened across the country during the year.
Ashok Leyland's key subsidiaries, including Switch Mobility, Ohm Mobility, Hinduja Leyland Finance, and Hinduja Tech, are progressing well and adding significant value. Hinduja Tech recently secured a $50 million investment from private equity investors to pursue further acquisitions.
Outlook
Shenu Agarwal, Managing Director & CEO, Ashok Leyland, said the company plans to launch one product every two months, in the current fiscal. The 55 tonne electric prime mover is ready and its H2 ICE truck is undergoing customer trials, The capex for this fiscal will be between INR 500 crore to INR 700 crore, he said.
Dheeraj Hinduja, Chairman, Ashok Leyland, said, “We remain optimistic about our industry prospects in the short to medium term, backed by robust growth in the Indian economy. We are confident in our ability to maintain sustainable and profitable growth year after year through our unwavering focus on delivering differentiated products and providing best-in-class customer satisfaction.'
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