Ashok Leyland, the Indian flagship of Hinduja Group on Friday announced its financial results, reporting a Profit After Tax (PAT) of INR 199 crore for the Q2FY23 vis a vis a loss of INR 83 crore in the same period last year.
In the first half of the fiscal, the company posted revenue of INR 15,489 crore, a 109% YoY jump while the PAT for the same period rose by 173% to INR 267 crore against a loss of INR 365 crore in the same period last year.
Meanwhile, the company’s market share also increased to 32% in the quarter representing a 10% jump in a YoY basis.
The company retailed 23,275 units of its truck in the said quarter as opposed to 11,503 units it managed in the same period last year, posting a 102% growth. At the same time, in the first half of the fiscal, the company managed to grow its domestic truck sales by 136% YoY to 44,422% as against 18,850 in H1FY22.
Meanwhile the demand for busses from the company rose by 354% YoY to 2,200 units in second quarter and 280% YoY to 3,793 in the first half of the ongoing fiscal.
However, Gopal Mahadevan, CFO, & Whole-time Director, Ashok Leyland, noted that there is still enough potential left in the market as it is still shy of its peak of around 45,000 units.
A press release from the CV maker noted that it saw healthy demand for the AVTR range and the demand is expected to further improve, mirroring the expected increase in economic activity.
On the other hand, LCVs posted a growth of 28% YoY to 17,040 units in Q2 and 43% YoY to 31,424 units. In this segment, Bada Dost has seen a good demand and the company is ramping up production in line with market demand.
However, the growth in the segment was not up to the mark, as pointed out by the CFO, due to the effect of chip crisis in the segment.
The last-mile connectivity demand propelled by e-commerce is likely to continue supporting the volumes of ICV and LCV trucks. Other businesses like Aftermarket and Power Solutions Business continue to contribute to the top line of the company.
Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said “We see the demand continuing in all segments of trucks and passenger vehicles and we remain confident and optimistic about the future.”