Latest news with #DheerajHinduja
Time of India
26-05-2025
- Automotive
- Time of India
Ashok Leyland shares in focus after Q4 profit jumps 38% YoY to Rs 1,246 crore
Ashok Leyland shares will be in focus on Monday after the company reported a 38% year-on-year (YoY) rise in standalone net profit for Q4FY25 to Rs 1,246 crore, up from Rs 900 crore in the same period last year. The company's revenue from operations was up by 6% to Rs 11,907 crore over Rs 11,267 crore reported in the corresponding quarter of the last financial year. Sequentially, profit after tax (PAT) grew 63% from Rs 762 crore in Q3FY25, while revenue increased 26% from Rs 9,479 crore in the October–December quarter. The Hinduja Group's flagship said it delivered its highest-ever quarterly and annual revenues and EBITDA. For Q4FY25, EBITDA grew 15% to Rs 1,791 crore from Rs 1,592 crore in the year-ago period. For the full financial year, PAT jumped 26% YoY to Rs 3,303 crore in FY25 from Rs 2,618 crore in FY24. Revenues saw a marginal uptick of 1% to Rs 38,753 crore versus Rs 38,367 crore in FY24. Live Events The company's board has approved the issue of bonus equity shares in the ratio 1:1. The company will inform the record date in due course. Also Read: High conviction picks! ICICI Bank, HAL among 10 large-cap stock ideas from PL Capital Management commentary Dheeraj Hinduja, Chairman, Ashok Leyland said that achieving record-breaking numbers is a matter of immense pride for the company, adding that it reflected the resilience of our business. "With our unwavering focus on innovation and customer satisfaction, and thrust in international operations, we are well-positioned for sustained and profitable growth,' he said. Ashok Leyland share price target According to Trendlyne, the average target price for Ashok Leyland stands at Rs 256, implying an upside of nearly 7% from current levels. Among the 37 analysts covering the stock, the consensus rating is 'Buy'. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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Business Standard
25-05-2025
- Automotive
- Business Standard
We are well positioned as long as Indian market grows: Dheeraj Hinduja
Ashok Leyland, which was sitting on a net cash surplus of ₹4,242 crore in FY25, may be looking at possible acquisitions and entry into new markets. Dheeraj Hinduja, executive chairman, talks about the commercial vehicle (CV) maker's export plans, electric vehicle (EV) business, along with the geopolitical scenario in a video interaction with Shine Jacob. Edited excerpts: Your EV arm Switch Mobility plans to shut down the UK facility at Sherburn. What's your roadmap? Looking at the way the European and UK markets are evolving, it was the right decision by the company to put extra focus on the Indian market. That does not mean we are exiting those markets. We will continue to service those markets. We will look at maintaining our sales in due course of time. The domestic market is growing well for buses. Switch is winning many tenders and has been through new product introductions as well. It will be doing it this year as well. In that respect, I believe the Indian government is giving a very good push to electric buses. It is providing support through incentives as well. We are quite comfortable and will look at this opportunity to explore new markets through new products. You had set a target of 15,000 units for exports in FY25 from around 11,853 units in FY24 and comfortably crossed that. When do you expect to touch your long-term goal of 50,000 units? Rather than focusing on the 50,000 units, which may be the end goal, what is important on an annual basis is to continue this growth. Last year, we managed to deliver what we had estimated (15,255 units). This year also, we are confident that we will be able to increase this quite well. It is not purely dependent on the markets but also on our extended product range within some of the existing markets. At the same time, we continue to explore new terrains. Every time we go into a new market, it takes two-three years to establish an ecosystem, which includes dealerships, products, and after-sales support. All the initiatives that we have taken in the last few years in growing in the African market are suddenly coming through very well. In the Gulf Cooperation Council (GCC) region also, we are well placed, and having our facility in Ras Al Khaimah ensures that our buses are actually seen as an Emirates product. People are seeing us as a local player. In many new markets that we are opening, people should feel comfortable that we are there as a local player and will continue being there to support them through our services. In my view, this is a long-term journey for Indian original equipment manufacturers (OEMs) as they continue to expand their international operations. The acceptability of Ashok Leyland and other Indian products is now improving because of the policies we are offering today. This year, we would see much better numbers in our international operations. Can we say, by 2027 you will be crossing the 25,000-mark? I always hesitate to give numbers, especially because there are so many geopolitical and international issues that are going on. If something happens in any of our key geographies, it can affect our numbers drastically. However, it is a long-term goal to continue growing our international operations. The expansion is happening much better today purely because of the products that we have. How do you see the current tariff scenario and geopolitical crisis globally impacting your raw material prices, especially steel? We are seeing certain protections being given to the steel manufacturers in the country. To the extent possible, it is an ongoing cost-reduction initiative that we are undertaking. While steel may go up, we need to see how we can balance it out in other areas. Luckily, India, being a large market, has good demand internally as well. It still contributes more than 90 per cent of our market. As long as the Indian market continues to grow, our company is well positioned. You are aggressive on liquefied natural gas (LNG) and hydrogen as well. What's your strategy with regard to this? On all alternative fuels, including hydrogen and LNG, we are moving forward with our development plan. For the customer segment and also for the government, we will make sure that as a supplier of buses and trucks, we will make all fuel types available depending on the customer's wish.
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Business Standard
25-05-2025
- Automotive
- Business Standard
As Indian market grows, our company is well positioned: Dheeraj Hinduja
Dheeraj Hinduja talks about its export ambitions, electric vehicle (EV) business, and geo-political scenario Shine Jacob Chennai Listen to This Article Ashok Leyland, which was sitting on a net cash surplus of ₹4,242 crore in FY25, may be looking at possible acquisitions and entry into new markets. Dheeraj Hinduja, executive chairman, talks about the commercial vehicle (CV) maker's export plans, electric vehicle (EV) business, along with the geopolitical scenario in a video interaction with Shine Jacob. Edited excerpts: Your EV arm Switch Mobility plans to shut down the UK facility at Sherburn. What's your roadmap? Looking at the way the European and UK markets are evolving, it was the right decision by the company to put extra focus on the Indian
Business Standard
24-05-2025
- Automotive
- Business Standard
Ashok Leyland Q4 PAT jumps 38% YoY to Rs 1,246 cr; declares 1:1 bonus issue
Ashok Leyland reported a 38.4% year-on-year rise in standalone net profit at Rs 1,245.87 crore for the quarter ended March 2025, compared to Rs 900.41 crore in the same period last year. Revenue from operations rose 5.68% to Rs 11,906.71 crore posted in the fourth quarter of FY25 as against Rs 11,266.66 crore posted in Q4 FY24. Profit before tax (PBT) stood at Rs 1,657.27 crore in Q4 FY25, registering a growth of 18.25% over Rs 1,401.43 crore reported in the same quarter last year. The company reported an exceptional loss of Rs 13.65 crore in Q4 FY25, compared to an exceptional loss of RS 69.66 crore in the corresponding quarter of FY24. The companys EBITDA rose 12.5% year-on-year to Rs 1,791 crore in Q4 FY25, compared to Rs 1,592 crore in the corresponding quarter of the previous fiscal. The EBITDA margin expanded by 90 basis points YoY to 15.04% in Q4 FY25, compared to 14.13% in Q4 FY24. In Q4 FY25, the company generated cash of Rs 3,284 crore. On a full-year basis, Ashok Leylands consolidated net profit jumped 26.2% year-on-year to Rs 3,303.29 crore, driven by a 1% increase in revenue from operations, which rose to Rs 38,752.74 crore in FY25 compared to FY24. In FY25, Ashok Leyland's overall commercial vehicle (CV) volumes totaled 1,95,093 units, nearly matching the previous high of 1,97,366 units. The company's MHCV bus segment recorded its highest-ever volume of 21,249 units during the year. Export volumes also reached one of the highest levels in recent years, totaling 15,255 units, a 29% increase compared to 11,853 units in the previous year. Additionally, the Power Solutions and Defence businesses showed impressive growth. The robust performance was driven by strong contributions across all business segments, with significant support from the companys subsidiaries. Dheeraj Hinduja, Chairman, Ashok Leylandm said, Achieving these record-breaking numbers is a matter of immense pride for us. It reflects the resilience of our business and the trust our customers place in us. Given companys strong financial performance in the last three years, the board of directors has approved a 1:1 bonus share issue. This is on the back of two interim dividends announced for FY25 amounting to 625%, or Rs. 6.25 per share. With our unwavering focus on innovation and customer satisfaction, and thrust in international operations, we are well-positioned for sustained and profitable growth. Shenu Agarwal, Managing Director & CEO, Ashok Leyland, said FY25 has been another landmark year for us. Weve set new records in revenue, EBITDA, and profitability. Our margin expansion and robust cash generation reflect the strength of our operations. It also gives us immense satisfaction to achieve our medium-term goal of mid-teen EBITDA in Q4. The company is in a very strong cash position, ending the year with a cash surplus of Rs 4,242 crore. This gives us more fuel to further augment our strengths in products and technology, and to offer best-in-class customer experience. We are continuing on our premiumization journey with high focus on delivering exceptional value to our customers. We are now more confident than ever in our ability to gain market share and further improve our price realization. Meanwhile, the company has paid two interim dividends for FY25: a first interim dividend of Rs 2 per share in November 2024, followed by a second interim dividend of Rs 4.25 per share in May 2025, bringing the total to Rs 6.25 per share (625% of face value Rs 1). Further, the company's board approved issuing bonus shares in ratio of one bonus shares of every one share held. The board of Ashok Leyland has approved the issue of bonus equity shares in the ratio of 1:1, i.e., 1 equity share of Rs 1 each for every 1 fully paid-up equity share of Rs 1 each held by the shareholders as on the record date, subject to approval through a postal ballot. The company will announce the record date for determining shareholders' entitlement to the bonus shares in due course, it said in an exchange filing. Ashok Leyland is engaged in the manufacture and sale of a wide range of commercial vehicles. The company also manufactures engines for industrial and marine applications, forgings, and castings. Shares of Ashok Leyland rose 0.36% to end at Rs 239.60 on Friday, 23 May 2025.
Mint
23-05-2025
- Automotive
- Mint
With over ₹4,000 crore in cash, Ashok Leyland has eyes on acquisitions, new markets
Ashok Leyland Ltd, the Hinduja Group flagship company that makes trucks and buses, will look to enter new markets with new products this financial year, and possibly at acquisitions as well, after ending 2024-25 with surplus cash. India's third-largest manufacturer of commercial vehicles ended FY25 with net cash of ₹ 4,242 crore, with ₹ 3,284 crore of it generated in the fourth quarter. It had ended FY24 with net debt of ₹ 89 crore. While the company will explore acquisitions and new markets, it plans to maintain its capital expenditure at about ₹ 1,000 crore, similar to that in FY24, Dheeraj Hinduja, executive chairman of Ashok Leyland, told Mint. 'This industry is already quite consolidated. New acquisitions should give us access to new technologies and new geographies which align with our core business,' Hinduja said. 'Even if we don't go ahead with new acquisitions, we will continue to venture into new markets with new products.' Ashok Leyland was able to save more than ₹ 700 crore in FY25, in part because of lower raw material prices and improved operational efficiency, according to the company. However, Ashok Leyland's market and product expansion efforts hit a snag recently with its step-down e-bus subsidiary Switch Mobility Ltd in the UK. In March, the Chennai-based company announced that Switch UK could potentially shut manufacturing and assembly activities at its Sherburn facility due to sluggish demand and outlook for e-buses in the UK. 'Consultations with (Switch UK's) employees are still ongoing, which could lead to shuttering of the operations,' Ashok Leyland's chief financial officer K.M. Balaji told Mint. 'We will look to source vehicles for the UK market from nearby locations.' Hinduja added that India 'remains one of the most exciting electric vehicle markets right now. The government's push is also helping in aiding growth'. "Staggered investments are always better in a market which is growing at a tepid pace. This could explain (Ashok Leyland's) stable capex outlay," Saji John, senior research analyst at Geojit Financial Services. "Ashok Leyland is well-placed from a cash position. Its investments into Switch Mobility will be something to watch as the order book is growing." Ashok Leyland reported a mere 1% growth in FY25 standalone revenue to ₹ 38,753 crore as sales of commercial vehicles remained muted. However, the margin on its earnings before interest, taxes, depreciation, and amortisation (ebitda) increased by 90 basis points to 15% on the back of lower commodity prices and the company's efforts to cut costs. As a result, FY25 profit after tax surged 26% to ₹ 3,303 crore. In the fourth quarter of FY25, Ashok Leyland's revenue improved 6% to ₹ 11,907 crore while profit after tax jumped 38% to ₹ 1,246 crore. The company's management expects revenue growth to improve in FY26 as it sees India's commercial vehicle market growing in mid single-digits during the year. Volume growth will be driven by macroeconomic growth and better monsoons during the year, which should boost demand for commercial vehicles in the second half of this financial year, said Hinduja. 'This fiscal is likely to see growth compared to the flattish fiscal 2025 for our revenues. Our efforts to improve profitability of the company will continue, which will see improvement in margins,' Hinduja said.
