Ashok Leyland Ltd's Q3FY25 Quarter Results
- 13 Feb 2025
Result Summary
- Ashok Leyland Ltd reported a 7.1% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 8.5%.
- Its expenses for the quarter were up by 6.2% QoQ and 6.1% YoY.
- The net profit increased 6.9% QoQ and increased 34.6% YoY.
- The earnings per share (EPS) of Ashok Leyland Ltd stood at 2.6 during Q3FY25.
Financial Statments for Q3FY25
| (₹ crores) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 12060.15 | 11261.84 | 11119.45 | 7.1% | 8.5% |
Total Expenses | 10777.77 | 10149.24 | 10155.07 | 6.2% | 6.1% |
Profit Before Tax | 1124.65 | 1066.72 | 977.63 | 5.4% | 15.0% |
Tax | 312.56 | 311.51 | 374.87 | 0.3% | -16.6% |
Profit After Tax | 819.67 | 766.55 | 608.85 | 6.9% | 34.6% |
Earnings Per Share | 2.60 | 2.40 | 1.90 | 8.3% | 36.8% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
Ashok Leyland Ltd is a leading automobile manufacturer in India, primarily engaged in the production and sale of commercial vehicles. The company is well-known for its wide range of heavy, medium, and light commercial vehicles, including trucks and buses. Ashok Leyland operates in the automotive industry, which is characterized by high competition and cyclical demand patterns. The company is a key player in India's commercial vehicle sector and has a significant presence in international markets. Recent major developments include advancements in electric vehicle technology and strategic partnerships to enhance market reach and product offerings. However, specific details of these recent developments are not available in the provided data.
Revenue
During the third quarter of fiscal year 2025 (Q3FY25), Ashok Leyland reported a total income of ₹12,060.15 crores, which represents a quarter-over-quarter (QoQ) increase of 7.1% from ₹11,261.84 crores in Q2FY25. Additionally, the company's year-over-year (YoY) revenue growth was 8.5%, up from ₹11,119.45 crores in Q3FY24. These figures underscore the company's revenue growth over both the previous quarter and the same quarter in the prior year. The increase in total income indicates a positive trajectory in revenue generation, reflecting the company's ability to grow its top line through either increased sales volumes, pricing strategies, or a combination of both.
Profitability
Ashok Leyland's profitability has shown positive movement in Q3FY25, with a profit before tax (PBT) recorded at ₹1,124.65 crores. This marks a 5.4% increase QoQ from ₹1,066.72 crores in Q2FY25. On a YoY basis, the PBT increased by 15.0% from the previous year's figure of ₹977.63 crores. Profit after tax (PAT) for Q3FY25 stood at ₹819.67 crores, up by 6.9% QoQ from ₹766.55 crores in Q2FY25, and a significant 34.6% YoY increase from ₹608.85 crores in Q3FY24. The tax expense for Q3FY25 was ₹312.56 crores, showing marginal QoQ growth of 0.3% and a YoY decrease of 16.6% compared to Q3FY24. Earnings per share (EPS) in Q3FY25 were ₹2.60, reflecting an 8.3% QoQ rise and a 36.8% increase YoY, highlighting the company's enhanced profitability on a per-share basis.
Operating Metrics
The financial performance of Ashok Leyland in Q3FY25 is marked by a rise in total expenses to ₹10,777.77 crores, representing a 6.2% increase QoQ from ₹10,149.24 crores in Q2FY25, and a 6.1% rise YoY from ₹10,155.07 crores in Q3FY24. Despite the increase in expenses, the company managed to achieve higher revenue and profitability metrics, indicating efficient management of operational costs relative to income growth. The operating performance is further evidenced by the increase in EPS from ₹2.40 in Q2FY25 to ₹2.60 in Q3FY25, and from ₹1.90 in Q3FY24, reflecting improved earnings distribution to shareholders. The company's ability to manage its cost structure while achieving revenue growth highlights its operational efficiency in the current fiscal quarter.
