Ashok Leyland has improved its market share for trucks and buses in Q4FY23 to 32.7% (30.6%) and 27.1% (26.4%), respectively, driven by revenue growth in the quarter to INR 11.626 crore against INR 8,744 crore in the same period last year. The revenue for the full year was INR 36,144 crore as against INR 21,688 crore in FY22. At the same time, the domestic LCV volumes grew by 18% to 18,840 units as against 15,971 units in the same period last year.
A press release from the company noted that the successful AVTR range and the launch of the CNG range in ICVs backed the performance. In the LCV segment, both Dost and Bada Dost continue to perform well, the company said.
Going forward, last-mile connectivity demand propelled by e-commerce is likely to support LCV truck volumes. The company has also extended its widespread network by opening 152 new outlets across the country.
Dheeraj Hinduja, Executive Chairman, Ashok Leyland, noted that the CV industry is buoyant due to favourable macroeconomic factors and healthy demand from the end-user industries. The trend is expected to continue alongside growth in core sectors such as construction & mining, agriculture, increased capital outlay for infrastructure projects and pent-up replacement demand.
He added that the focus on International Operations, Defence, Power Solutions and Parts businesses will continue to balance the volatility of the core business. “With momentum gradually picking up in electric vehicles, Switch Mobility is well poised to complement the developments at Ashok Leyland across a spectrum of alternate propulsion systems,” Hinduja added.
Shenu Agarwal, Managing Director & CEO, Ashok Leyland, said, “We have been able to achieve growth in market share, across geographies and across product segments, along with significant improvement in our profitability.”
While the company shall continue to pursue better realisations even as it expands its market share, the resolute focus shall remain on bringing deeper efficiency and cost improvement, he added.
“We have generated close to INR 2,287 crore of cash this quarter owing to better profits and focused management of working capital, which gives us the ability to further accelerate our investment in future products and technologies,” Agarwal noted.