The shares of the leading commercial vehicle manufacturer gained around 1.5 percent to Rs 181.90 per share after the company reported strong sales volumes of its commercial vehicles in the calendar year of 2023.
Ashok Leyland Ltd is a large-cap stock, with a market capitalization of Rs 52,718 crore. It is the world’s biggest manufacturer of medium-duty defense vehicles.
Ashok Leyland announced that it has reached yet another milestone by clocking its highest-ever sales volume of its commercial vehicle in a calendar year of the company during the year 2023.
The company achieved a total commercial vehicle volume of 1,98,113 units surpassing its previous record established in the year 2018. The company reported in its exchange filing.
The company’s revenues have increased by 19 percent year on year from Rs 9,600 crore in Q2FY23 to Rs 11,429 crore in Q2FY24, while net profit has increased by 206 percent from Rs 186 crore to Rs 569 crore, in the same period.
Ashok Leyland shares have given a return of 10 percent in the last six months and 18 percent in a year.
The company has planned to invest Rs 1,200 crore in its electric mobility subsidiary Switch Mobility. This investment will encompass the company’s foray into electric buses and light commercial vehicles. Presently, Switch Mobility has a fleet of over 800 operational buses.
Ashok Leyland, the Indian flagship of the Hinduja Group and the country’s leading commercial vehicle manufacturer, The company manufactures heavy and medium commercial vehicles and related components, light commercial vehicles, and power solution systems.
The company has manufacturing facilities in the UAE, Sri Lanka, Bangladesh, Nigeria, the UK, Kenya, and India.
Ashok Leyland is the second largest manufacturer of commercial vehicles in India in the medium and heavy commercial vehicle segment, the eighth largest manufacturer of buses in the world, and the fifteenth largest manufacturer of trucks globally.
At the time of writing this report, Ashok Leyland Ltd shares were trading at Rs 179.70 per share, up 0.14 percent from the previous close price.
Written by Omkar Chitnis
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