Ashok Leyland Reports 6% Dip in Q1 Net Profit Despite Revenue Growth

Ashok Leyland, part of the Hinduja Group, reported a 6% year-on-year drop in its consolidated net profit to Rs 509 crore for the June 2024 quarter. Despite this, the company saw a revenue increase to Rs 10,754 crore. Chairman Dheeraj Hinduja highlighted strong market performance and growth momentum in the commercial vehicle sector.

Hinduja Group's flagship, Ashok Leyland, announced a 6% year-on-year decline in its consolidated net profit, amounting to Rs 509 crore in the June 2024 quarter.

This is compared to a net profit of Rs 544 crore in the corresponding period of the previous fiscal year.

The company's total income rose to Rs 10,754 crore in the first quarter, up from Rs 9,735 crore in the same period the previous year, according to a regulatory filing.

Ashok Leyland Chairman Dheeraj Hinduja noted that the commercial vehicle industry continues to maintain growth momentum, which was unexpected at the beginning of the year. First-quarter industry volumes were at levels comparable to the peak seen in Q1FY19, he said.

Hinduja further mentioned that the company's Q1 performance exceeded expectations, achieving impressive results through a focused market strategy and cost management.

He added that the company, through Switch Mobility, is prepared to enter the expanding EV market with a defined roadmap.

Ashok Leyland's Managing Director & CEO, Shenu Agarwal, commented on the improved bottom line, citing revenue growth and efficient cost management.

Shares of Ashok Leyland closed slightly higher at Rs 232.50 apiece on the BSE.

(With inputs from agencies.)