Truck and bus maker Ashok Leyland posted the highest-ever March-quarter net profit at Rs 1,246 crore – up 38% year-on-year (y-o-y) – helped by cost-cutting measures and deferred tax credit. The profit in the fourth quarter of FY25, on a standalone basis, beat the Bloomberg estimate of Rs 1100 crore.
Revenue from operations grew by 6% y-o-y to Rs 11,857 crore, lower than the estimate of Rs 12,066 crore. The company’s board approved the issue of bonus shares after a gap of 14 years, in the ratio of 1:1.
The deferred tax credit was Rs 173 crore.
Domestic volumes of medium and heavy commercial vehicles (MHCV) of Ashok Leyland in the March quarter rose 4% y-o-y to 36,053 units, in line with the 4% growth recorded by the industry. Its small commercial vehicle volumes dipped 1% to 16,631 units, while the industry grew by 4%.
Exports in the quarter jumped 52% to 5,460 units.
Shenu Agarwal, MD and CEO, Ashok Leyland, said, “We have a few levers to work on. We will drive more value addition to command better prices. Our cost per vehicle is the least in the industry and we will continue working on that.”
Company officials further stated that the ageing of trucks within the system will help bring replacement volumes.
“We are optimistic about FY26 as the average age of a truck has gone up to 9-10 years from 7-8 years. The bus industry still has pent-up demand and freight rates have improved. Lowering of interest rates has also helped.”