Ashok Leyland shares have jumped in value since the company reported a net profit of ₹361.34 crore in the third quarter of the 2023 financial year compared to a net loss of ₹5.76 crore in the same quarter during the previous financial year.
What Happened? Ashok Leyland announced its quarterly figures on Wednesday which revealed a 63.3% jump in net sales to ₹8,984.95 crore, against a ₹5,503.64 crore figure in the third quarter of FY22.
The commercial vehicle manufacturer also saw Profit before tax soar to ₹566.52 crore in Q3 from just ₹27.07 crore in the same period last financial year. Earnings before interest, taxes, depreciation and amortization (EBITDA) also went up to 255% to ₹797 crore against ₹224 crore last year with a margin of 8.8%.
The company’s domestic medium and heavy commercial vehicle (MCVH) volume grew by 69% over the same period last year earning the company a market share of 33% in the segment.
That said, company’s executive chairman Dheeraj Hinduja noted that it saw growth in all three segments which include medium duty vehicles (MDV), intermediate commercial vehicles (ICV) and light commercial vehicles (LCV) as it bolstered its portfolio in both MHCV and LCV segments.
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"The current quarter saw the confluence of a continued uptick in our volumes, better realisations, and lower input costs, thus helping us achieve higher profitability as well as market share," Shenu Agarwal, MD & CEO, Ashok Leyland added in an exchange filing.
Price Action: Ashok Leyland’s stock price is trading 3.22% higher at ₹152.45 on Thursday.
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