Ashok Leyland’s exports surge by 33% in Dec-quarter led by GCC

NEW DELHI : Commercial vehicle manufacturer Ashok Leyland, part of the Hinduja Group, witnessed a 33% increase in exports to 4,151 units led by GCC (Gulf Cooperation Council) in the October to December quarter, a top company official told reporters on Wednesday. 

“Previously, we were very much limited to buses, but in the last few years, all of our exports have had a good mix of buses and trucks, and our traditional markets have been very strong, especially the GCC market—UAE and Saudi—and we see good traction and continuing momentum over there. We are continuing to grow in Africa as well, and there are some bright sparks in the SAARC markets as well. However, I would say that the growth is predominantly coming from the GCC market,” says Dheeraj Hinduja, Chairman of Ashok Leyland, during a post-earnings call.

According to Shinu Agarwal, MD & CEO of Ashok Leyland, the company witnessed an increase in export volumes in all key markets. 

For the October to December quarter, the Chennai-based commercial vehicle manufacturer reported a 31% increase in consolidated net profit to Rs 820 crore as against Rs 609 crore in Q3FY24. Revenue from operations of Ashok Leyland witnessed a growth of 8% in the December quarter to Rs 11,995 crore as against Rs 11,066 crore in the same period last year. According to Hinduja, the company’s sales improved on the back of the festive season as well as an increase in government investments. The company’s Ebitda margin improved to 12.8% in Q3 from 11.6% in Q2 and 12% of the same period last year.

Notably, the company’s board has approved an investment of Rs 500 crore in UK-subsidiary Optare and Rs 200 crore in Hinduja Leyland Finance.

In the MHCV (medium and heavy commercial vehicle) segment, Ashok Leyland retained its position with a 30% market share. “Our nine-month ending December 24 market share stood at 30.4%. We remain committed to achieving our MHCV market share goal of 35% in the medium term,” says Hinduja.

In the LCV segment (2-4 tonnes), the company lost market share of 18.5% owing to new product launches by the competition. “With the launch of Saathi (launched during the Bharat Mobility Global Expo), we are committed to improving our market share to 20% in the short term and 25% in the medium term,” says Hinduja.