<p>Ashok Leyland marked a 61% growth in net profit to INR 580 crore for Q3 FY24, against a net profit of INR 361 crore in Q3 FY23. </p>
Ashok Leyland marked a 61% growth in net profit to INR 580 crore for Q3 FY24, against a net profit of INR 361 crore in Q3 FY23.

New Delhi: Supported by the huge infrastructure push, the commercial vehicle industry is well positioned for the next year and in the medium term, said the Chennai-based Ashok Leyland.

Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said, “Before the start of this financial year we had expected that the medium and heavy commercial vehicle (M&HCV) industry would grow at 8-10%. In the first three quarters, it has grown by 9%. The demand trajectory remains good for the rest of the period (January-March), albeit high base of last year.”

In the light commercial vehicle (LCV) segment, the industry has seen a 3% de-growth during the first nine months. Our volumes have grown by 2%, which has resulted in a market share improvement of 1%, Hinduja said.

<p>Dheeraj Hinduja, Executive Chairman, Ashok Leyland</p>
Dheeraj Hinduja, Executive Chairman, Ashok Leyland

Shenu Agarwal, MD & CEO, Ashok Leyland said that based on past experience there is a possibility that there might be a moderation in growth in Q4 because of the effect of the upcoming elections. But the country is behaving differently and it may not be right to look at the history and project the future.

“Even if there is some small dent in Q4, the recovery will be very fast after the elections because all the fundamental macroeconomic factors favour the industry. The medium and long term looks very strong,” he added.

On Monday, the leading truck and bus maker reported that its net profit increased 61% to INR 580 crore for the October-December quarter. The company had reported a net profit of INR 361 crore in the corresponding period last year.

Revenue from operations grew to INR 9,273 crore in Q3 FY24 as against INR 9,030 crore in Q3 FY23.

<p>Shenu Agarwal, MD &amp; CEO, Ashok Leyland</p>
Shenu Agarwal, MD & CEO, Ashok Leyland

In May last year, the CV maker said it would invest about INR 600- 750 crore this year in debottlenecking for some capacity augmentation and in some routine areas.

“We have enough overall capacity for M&HCV and LCV up to the next two to three years. After that we might have to look at some capacity expansion. Meanwhile, the only capex that we will do on capacity would be to balance out different production between the different plants, which will be very minor in nature,” Agarwal said.

Capital infusion in Switch Mobility

Aggarwal said that the company’s Board has approved an equity infusion of INR 1,200 crore into Optare PLC UK, which is the holding company for its EV arm Switch India and UK.

“Out of that INR 1,200 crore, we have already infused INR 662 crore in the quarter gone by (October-December 2023). We will infuse the rest of the amount in the next few months in one or more tranches,” he said.

The company earlier shared that the funds infused will be used for capital expenditure, R&D and meeting operational requirements both in the UK and India.

Globally, Switch has an order pipeline of nearly 1100 vehicles.

  • Published On Feb 7, 2024 at 08:44 AM IST

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