Ashok Leyland Limited
Ashok Leyland is the flagship Company of the Hinduja group, having a long-standing presence in the domestic medium and heavy commercial vehicle (M&HCV) segment. The company has a strong brand and well-diversified distribution and service network across the country and has a presence in 50 countries, it is one of the most fully-integrated manufacturing companies. Its headquarter is in Chennai.
Key Business segments
1) Commercial Vehicles (89% in FY24 vs 88% in FY22)
2) Financial Services (11% in FY24 vs 12% in FY22)
Shareholding Pattern
-PUBLIC GROUP
-PROMOTER GROUP
Financial Summary
| Particulars | March 2022 | March 2023 | March 2024 |
| Sales | 26,237 | 41,673 | 45,791 |
| Sales Growth % | 34.87% | 58.83% | 9.88% |
| Expenses | 23,472 | 36,580 | 37,848 |
| Operating Profit | 2,765 | 5,093 | 7,943 |
| OPM % | 11% | 12% | 17% |
| Net Profit | -285 | 1,359 | 2,696 |
| EPS in Rs | -1.22 | 4.22 | 8.46 |
Synopsis of Financials
- Q3 FY25 net profit increased by 31% YoY.
- EBITDA margin improved to 12.8% from 11.6% in Q2 FY25 and 12.0% in Q3 FY24.
- Revenues reached an all-time high of ₹9,479 crores in Q3 FY25 compared to ₹9,273 crores in Q3 FY24.
- Operating PBT stood at ₹994 crores, up 10% YoY.
- Reported PAT was ₹762 crores, a 31% increase YoY.
- Material cost as a percentage of revenue decreased to 71.5% from 72.2% YoY.
Final Outlook
Ashok Leyland has seen a consistent improvement in profitability and efficiency over the past few quarters. Its ROCE, while slightly down from last year, is still competitive at 15%. Operational efficiency remains strong with stable working capital days and a negative cash conversion cycle. This reflects solid vendor relations and cash flow management.
With improving operational metrics, robust demand, and consistent returns, Ashok Leyland is a good long-term play in the auto sector. Its performance outlook for the next 2–3 years remains optimistic with potential for capital appreciation.
Ashok-Leyland-Limited-PDF-Report