New Delhi: Ashok Leyland, a subdivision of Hinduja Automobile Ltd, on Friday reported a 747 per cent year-on-year (YoY) increase in its standalone net profit for the June quarter of fiscal year 2023 at Rs 578.42 crore, as against Rs 68.05 crore in the same period last year.
ashok leyland result
The integrated automobile company reported a 13.5 per cent rise in its revenue from operations to Rs 8,151.96 crore. It was Rs 7,189.2 crore in the same period last year.
The company’s other income increased to Rs 37.3 crore during the quarter from Rs 33.5 crore in the year-ago quarter.
Meanwhile, the company’s total income for the first quarter of FY23 grew 13.4 per cent year-on-year to Rs 8,189.3 crore, as against Rs 7,222.8 crore in the year-ago period.
The Chennai-headquartered company announced a 17 per cent year-on-year (YoY) decline in its net profit for the March quarter of FY 2022-23 at Rs 751.41 crore. However, the company’s revenue from operations grew 33 per cent year-on-year to Rs 11,626 crore.
Ashok Leyland’s other income more than doubled to Rs 51 crore from last year’s Rs 26 crore. The company’s deferred tax credit for the June quarter increased to Rs 168 crore as against Rs 1.9 crore in the same period last year.
The company’s shares were trading at Rs 179.25, up 3.60 per cent, on the BSE as soon as the results became public on the last day of the trading session.
Currently, Ashok Leyland has announced an order amounting to Rs 80 crore from the Indian Armed Forces. The order includes contracts for the production of Field Artillery Tractor (FAT 4×4) and Gun Towing Vehicle (FTV 6×6) which are on the initial positive indigenization list announced by the Government of India.
Analyst Comment
Himanshu Singh, a research analyst at Prabhudas Lilladher Pvt Ltd, said the overall, strong set of numbers from both revenue and margin lagged behind street estimates.
He further added that according to the company, demand should improve from Q2FY24 onwards as Q1 performance was impacted by pre-purchases in Q4FY23 before the transition to BS VI Onboard Diagnostics (OBD) 2 norms.