India's Ashok Leyland beats quarterly profit view on demand for high-margin heavy vehicles
Indian truck and bus maker Ashok Leyland reported a higher-than-expected rise in fourth-quarter profit on Friday thanks to healthy demand for its margin-boosting, heavier load-carrying models.
The Hinduja Group-owned automaker reported a profit of 12.46 billion rupees ($146 million) in the quarter ended March 31, a 38.4% rise over the previous year.
Analysts, on average, expected the company to report a profit of 11.09 billion rupees, according to data compiled by LSEG.
Ashok Leyland's overall sales grew 5%, with those of its larger models climbing 7%, it said in its quarterly update in April.
The company benefited from lower discounting compared to a year before, analysts said, while higher contribution to sales from its more profitable heavy commercial vehicles (CV) helped.
The segment, which includes vehicles such as the 'BOSS' truck, forms two-thirds of Ashok Leyland's overall sales.
The low-margin small CV segment's contribution to Ashok Leyland's overall sales declined.
IndiGo flight facing severe weather was denied diversion requests, India says
Industry-wide sales of commercial vehicles grew 1.5% in the January-March period, with the medium and heavy models' 3.9% sales jump driving growth.
Rival Eicher reported profit at its CV joint venture with Volvo doubled due to high demand, while Tata Motors reported a profit decline as demand for its small CVs stayed low.
Ashok Leyland's shares closed 0.3% higher on the day, little changed after the results.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
30 minutes ago
- Business Recorder
Rupee back on the ropes after US yields spike post jobs data
MUMBAI: The Indian rupee is set to come under renewed stress on Monday after the U.S. economy added slightly more number of jobs than was expected, prompting a rise in U.S. Treasury yields and bringing relief to the dollar. The 1-month non-deliverable forward indicated a open in the 85.74-85.78 range, versus the close of 85.6250 in the previous session. The Indian currency had found respite on Friday after the Reserve Bank of India delivered a larger-than-expected rate cut while the signalling limited room for more reductions. The policy surprise lifted domestic equities and lent support to the rupee. 'The opening today is probably just a retracement of Friday's move,' a currency trader at a Mumbai-based bank said. 'With the U.S. jobs data broadly positive for the dollar, the rupee is simply coming back under pressure.' Indian rupee ends higher The trader is betting on a 85.60-86.00 range for the week with bias more-or-less neutral. US jobs surprise Employers added 139,000 jobs last month, above estimates for an increase of 130,000. Average hourly earnings increased 0.4% in May against a rise of 0.3%. The unemployment rate was unchanged at 4.2%. Federal Reserve rate cut expectations were scaled back post the data, Morgan Stanley said in its daily commentary. The market-implied rate for the December Fed meeting was re-priced 9 basis points higher, implying just 42 bps of rate cuts through 2025, it said, adding that the probability of a rate cut in July fell to 12% from 25%. The 10-year U.S. Treasury yield climbed nearly twelve bps on Friday and the dollar index rose 0.5%. The key U.S. jobs report followed a string of mostly weak data points that had raised concerns about the economic outlook. With that risk now tempered to an extent, attention turns to the pivotal U.S.-China trade talks scheduled to take place in London later in the day.
Business Recorder
42 minutes ago
- Business Recorder
India central bank deputy flags concerns in microfinance sector, urges reforms
MUMBAI: India's microfinance sector continues to grapple with high interest rates, rising borrower over-indebtedness, and coercive recovery practices, highlighting the need for urgent lender reforms, a deputy governor of the central bank said. 'The (microfinance) sector continues to suffer from vicious cycle of over-indebtedness, high interest rates and harsh recovery practices,' M. Rajeshwar Rao said at an event in Mumbai on June 5. The speech was uploaded on the central bank's website on Monday. Indian banks have reported stress in the microfinance segment since the beginning of the current financial year, largely due to high borrower indebtedness, declining rural incomes, and election-related disruptions Indian central bank's FX forward book shrinks to $52.48 billion Even lenders with access to low-cost funds have been found to be charging significantly higher margins than the industry norm, which in several instances appear excessive, Rao said. While some moderation in interest rates on microfinance loans has been observed in recent quarters, pockets of high interest rates and elevated margins continue to persist, Rao said in the speech. Rao urged lenders to look beyond the conventional 'high-yielding business' tag for the microfinance sector, adding that there is a need to strengthen credit assessments to prevent borrower over-leverage and strictly avoid coercive recovery practices. Despite sound business models, he pointed out that organizational structures and incentive schemes might be flawed, resulting in 'perverse' outcomes for customers. 'This calls for an introspection around the models,' he added.
Business Recorder
4 hours ago
- Business Recorder
Chinese defence stocks surge as Pakistan signals major arms deal: report
Shares of Chinese defence firms soared on Monday after Pakistan announced plans to acquire a significant package of military equipment from Beijing, including one of China's most advanced stealth fighter jets, according to a Bloomberg report. The government of Pakistan, in a social media post last Friday, said it would purchase 40 J-35 fifth-generation stealth fighter jets, KJ-500 airborne early warning and control (AEW&C) aircraft, and HQ-19 ballistic missile defence systems. China's Ministry of Defence has not officially commented on the announcement. Bloomberg reported that AVIC Shenyang Aircraft Company, which manufactures the J-35 fighter, surged by its 10 percent daily limit in Shanghai, marking the third straight session of gains. The rally extended to other defence companies, including Aerospace Nanhu Electronic Information Technology Co., which saw its shares rise as much as 15 percent. The rise in Chinese defence stocks comes amid growing confidence in the effectiveness of Chinese military hardware following recent border clashes between Pakistan and India. Last month, Pakistan claimed that its Chinese-supplied J-10C fighter jets were involved in successfully shooting down six Indian aircraft, including French-built Rafale jets. While India dismissed those claims and downplayed the performance of foreign-supplied weaponry, it later confirmed that it had lost an unspecified number of fighter jets in the early May conflict. Indian Chief of Defence Staff Anil Chauhan acknowledged the losses during a May 31 interview, without providing further details. Military tensions between the two nuclear-armed neighbours flared up in early May, with both sides reportedly engaging in air, drone and missile strikes, along with cross-border artillery and small-arms fire, particularly along the Line of Control (LoC). Previous reports had highlighted the effectiveness of Chinese-made platforms like the J-10C in active combat has significantly raised their credibility in the global arms market. According to Bloomberg, this latest deal would mark China's first-ever export of the J-35 stealth fighter, first publicly unveiled at the 2024 Zhuhai Airshow. The inclusion of KJ-500 AEW&C aircraft is expected to substantially improve Pakistan's radar coverage, given the system's advanced electronic warfare capabilities and operational agility. The HQ-19 surface-to-air missile system would enhance Pakistan's air defence, particularly against ballistic missile threats. Defence analysts say the procurement reflects Pakistan's ongoing efforts to upgrade its military preparedness amid sustained regional volatility. At the same time, China continues to expand its influence as a global arms exporter by offering cutting-edge technology at relatively lower costs than its Western counterparts. Despite facing periodic scrutiny over corruption in its military-industrial complex, China has accelerated the development of advanced defence platforms. In December 2024, Beijing launched the world's largest next-generation amphibious assault ships, drawing international attention. Business Recorder also recently reported that Indonesia, traditionally reliant on military equipment from the United States and Russia, is now considering China's offer to sell J-10 fighter jets, signalling a shift in regional defence procurement trends. In a broader context, China's military-industrial progress appears to be part of a strategic vision to extend influence not just in the arms sector but also in dual-use domains. The J-35 sale, if confirmed, could further boost investor confidence in China's ability to compete in the high-end defence export market dominated by the United States and European powers. While formal details of the deal are still awaited, analysts say the announcement marks a milestone in Sino-Pakistan defence cooperation, with implications for both regional stability and global arms dynamics.
