The shares of this commercial vehicle manufacturing company fell around 2 percent despite receiving an order for 180 Electric Trucks valued at approximately Rs. 150 crores. In one year, the stock has delivered around a 30 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 65,159 crores, the shares of Ashok Leyland Ltd started Monday’s trading session on a flatter note at Rs. 225.39. During the trading session, the shares hit a low of Rs. 219.20, losing around 2 percent and closed the day at Rs. 222.42 apiece.
What Happened:
According to the exchange filing, the company has initiated the delivery of its first fully electric vehicle, the 14T Boss Electric Truck, to BillionE during the Bharat Mobility Global Expo 2024 held in New Delhi.
This event marks a significant milestone for Ashok Leyland, a leading commercial vehicle manufacturer in India, as it reinforces the company’s commitment to sustainable transportation solutions.
The vehicles were flagged off by key executives from both companies, including Mr Shenu Agarwal, MD & CEO of Ashok Leyland, and Mr Kartikey Hariyani, Founder & CEO of Billion E-Mobility.
Furthermore, BillionE has made a significant order for 180 electric vehicles, including the BOSS Electric Truck and the AVTR 55T Electric Tractor, valued at around Rs. 150 crores, with delivery scheduled for Q4 FY 2024-25.
Financials:
Looking at the company’s financial statements, the revenue decreased by 21 percent from Rs. 13,578 crores during the March quarter to Rs. 10,724 crores in the June quarter. On the other hand, the net profits declined by 41 percent from Rs. 934 crores to Rs. 551 crores during the same period.
September Sales:
In September 2024, Ashok Leyland reported total sales of 17,233 commercial vehicles, reflecting a 10 percent decline from 19,202 units sold in the same month last year.
Domestic sales accounted for 16,041 units, down 12 percent, while export sales reached 1,192 units, with Light Commercial Vehicle exports increasing by 49.77 percent to 325 units.
Further, the Medium and Heavy Commercial Vehicles (M&HCV) saw a 13 percent decrease to 11,077 units, and Light Commercial Vehicles (LCV) dropped to 6,156 units from 6,450 units in September 2023.
Future Outlook:
As per reports, Ashok Leyland expects high single-digit growth in LCV sales, with plans to launch six new models throughout the fiscal year.
The company aims to increase its market share from 20.4 percent to approximately 25 percent in the LCV segment, capitalizing on the burgeoning demand driven by e-commerce and rural consumption.
Furthermore, Ashok Leyland plans to introduce new products every alternate month, starting with a launch in May 2024. This proactive approach is designed to cater to diverse customer needs and enhance market penetration.
Moreover, the company’s electric vehicle subsidiary, Switch Mobility, is set to benefit from government initiatives promoting greener transport solutions, particularly through electric buses.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 27.58 percent and a return on capital employed (RoCE) of 17.46 percent for the period spanning FY23-24. Further, during the same period, the net profit margin stood at 5.85 percent.
Company Profile:
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.
Written By Vaibhav Patil
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