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The commercial vehicle major posted a net profit of ₹761.7 crore, significantly higher than the CNBC-TV18 poll estimate of ₹664 crore.
The bottom line also showed a robust 31.3% increase from ₹580 crore reported in the same period last year, driven by better operational efficiency and demand recovery in the commercial vehicle market.
Revenue for the quarter stood at ₹9,478.7 crore, reflecting a modest 2.2% year-on-year (YoY) increase from ₹9,273 crore. The company managed to surpass estimates of ₹9,064 crore, aided by strong truck and bus sales and steady fleet replacement demand.Operating performance was also strong, with EBITDA rising 8.8% YoY to ₹1,211.5 crore, compared to ₹1,114 crore in Q3 FY24.
Margins expanded to 12.8%, improving from 12% last year and exceeding the 11.8% forecasted by analysts. The margin expansion was supported by cost control measures, improved product mix, and stable raw material prices.
Following the upbeat results, shares of Ashok Leyland surged nearly 5%, trading at ₹212.55 on the BSE at 1:47 PM. The stock gained momentum as investors reacted positively to the earnings beat and management’s optimistic outlook for the sector.
First Published: Feb 12, 2025 1:56 pm IS
