The shares of the second-largest manufacturer gained up to 1.3 percent after the company bagged a prestigious work order from Tamil Nadu State Transport Corporation Ltd worth Rs 345 crore.
With a market capitalization of Rs 67,011.55 crore, the shares of Ashok Leyland Ltd were trading at Rs 228.15 per share, increasing around 0.74 percent as compared to the previous closing price of Rs 229.85 apiece.
Reason for Rise:-
According to the company filing, Ashok Leyland Ltd bagged a prestigious work order from Tamil Nadu State Transport Corporation Ltd worth Rs 345 crore for the Supply of BSVI Diesel Fuel Type Passenger Bus Chassis.
Financial performance:-
Examine the company’s financial condition, revenue dipped by 2.4 percent from Rs 11,429 crore in Q2FY24 to Rs 11,148 crore in Q2FY25, and during the same time frame, net profit magnified by 35 percent from Rs 569 crore to Rs 767 crore.
Market dynamic:-
The MHCV industry saw a 12% Q2 FY ’25 volume drop, driven by seasonal factors. Ashok Leyland’s domestic MHCV truck volumes fell 18% YoY, while buses rose 8%. Despite challenges, its MHCV market share grew to 31.2%, leading buses with a 35% share.
Product and Segment Insights:-
Light Commercial Vehicle (LCV) domestic volume dropped 3% YoY to 16,629 units, but market share rose to 19.8%. Export volume surged 14% YoY, supported by growth in SAARC, the Middle East, Africa, and Asia. Engine volumes grew 17%, while spare parts rose 13% YoY.
New Product Development:-
Ashok Leyland continues to innovate, launching the Bada Dost i5 LCV and Oyster ZI AC bus for ICV school and staff segments. Advancing in alternate fuel vehicles, the company secured an order for 180 electric trucks, strengthening its sustainable mobility portfolio.
Future outlook:-
Management is optimistic about H2 FY25, driven by improved fleet utilization and favorable macroeconomics. Expected government spending and possible interest rate cuts should support industry growth. The market is poised for stabilization, with profitability and market share prioritized despite challenges. A merger is underway.
Company Snapshot:-
Ashok Leyland has a lengthy history in the domestic medium and heavy commercial vehicle (M&HCV) industry. The firm has a strong brand, a diverse distribution and service network across the country, and a presence in 50 countries, making it one of the most completely integrated manufacturing enterprises.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
