Latest news with #DheerajHinduja
Time of India
2 days ago
- Automotive
- Time of India
Ashok Leyland plans new LNG models; eyes bigger ASEAN footprint
New Delhi: Ashok Leyland , India's third-largest commercial vehicle maker in volumes, on Thursday posted double-digit profit growth in Q1 FY26 and outlined plans for multiple product launches, including LNG and bi-fuel models, while sharpening its export focus on the high-potential ASEAN market . 'New product launches include our full range of high-dose powertracks. In the alternate fuel segments, we are preparing to launch multiple LNG models during the second half of the current financial year. We would also launch 13.5 and 15m buses and bi-fuel LCV products,' Chairman Dheeraj Hinduja said during a media briefing. To meet strong demand and bolster the production capacity, its new Lucknow plant in Uttar Pradesh is slated to open before December 2025. This comes in addition to the recently inaugurated Andhra Pradesh facility, which is currently ramping up operations, particularly for the bus segment. The consolidated net profit for the Hinduja Group's flagship company rose 19.4 per cent YoY to ₹657.72 crore in Q1 FY26 on record volumes, up from ₹550.65 crore a year earlier. Revenue from operations grew to ₹11,708.54 crore from ₹10,696.8 crore in Q1 FY25. Ashok Leyland ended the quarter with a net cash position of ₹821 crore. Shenu Agarwal, Managing Director & CEO of Ashok Leyland, noted that in the small commercial vehicle (SCV) segment, 0-2 tonne category is under short-term stress due to customer upgrades and competition from three-wheelers, while the 2-3.5 tonne category is growing. He further noted that India's 0-3.5 tonne SCV penetration is less than half that of markets like China, leaving significant headroom for growth, driven by e-commerce expansion into Tier-2 and -3 towns and rising last-mile mobility needs. EV business Ashok Leyland's electric vehicle (EV) arm, Switch Mobility's order book includes about 1100 units currently. Key tenders are expected to open in September, alongside several other bidding opportunities. Switch also achieved PBT break-even during the quarter. In Q1, EV penetration in the portfolio rose to 2.8 per cent of total volumes (502 units), up from 1.2 per cent a year ago. On the rare earth magnet supply issue, Hinduja said Switch has not faced disruptions so far, though the challenge is expected to impact the wider industry. 'For now, we are okay, but we are exploring alternatives to ensure production continuity,' he said, adding that more clarity should emerge in the coming weeks. The Board also cleared an investment of about ₹300 crore in its EV arm OHM Global Mobility and ₹5.7 crore in bus body unit Vishwa Buses and Coaches. 'For new tenders we participate in, OHM will receive the necessary funding support from us. So far, our experience with state transport units (STUs) has been positive, with timely payments. While we'll evaluate other options as demand and scale grow, for now Ashok Leyland is committed to providing all required support,' Hinduja said. When asked about the latest draft notification issued by the Bureau of Energy Efficiency (BEE) to retain light commercial vehicles (LCVs) under 3.5 tonnes in the fuel efficiency mandate despite industry pushback, the company said discussions are ongoing through industry body SIAM. 'Our stance will be aligned with the common industry position,' it said, without picking a side. Mahindra & Mahindra and Tata Motors are among the OEMs that have reportedly sought their exclusion. Exports in focus Ashok Leyland's exports rose 29 per cent year-on-year in Q1 FY26 to 3,011 units, the company's highest-ever quarterly performance. The growth was driven by strong demand from traditional markets in SAARC, Africa, and particularly the Middle East. Now, it expects FY26 to mark its highest-ever sales in export markets. While Latin America is not currently a focus, it sees significant potential in ASEAN and has begun building its presence there. The Philippines distributor, appointed two years ago, commenced local assembly of Ashok Leyland products last month. The company is now seeking partners in Indonesia, Thailand, and Vietnam– three of the region's largest commercial vehicle markets. Outlook Hinduja remains optimistic about both its medium and heavy commercial vehicle (MHCV) and light commercial vehicle (LCV) businesses, supported by steady fleet utilisation, rising freight rates, and improving operator profitability. The company expects commodity price volatility, particularly in steel, to ease in the coming quarters, along with the full transmission of RBI rate cuts likely soon. 'With government capex already high and set to rise further, the MHCV market is projected to grow at a mid-single-digit rate in FY26,' said Agarwal. 'So, we are really expecting that Q2 should be better this year on a lower base. But overall, we do think that the market will grow this year,' he noted.
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Business Standard
2 days ago
- Automotive
- Business Standard
Ashok Leyland Q1 profit rises 19% on record CV sales, cost control
Commercial vehicle major Ashok Leyland posted a 19 per cent rise in net profit for the first quarter of FY26 to ₹657.72 crore, compared with ₹550.65 crore in April–June FY25, driven by its highest-ever quarterly commercial vehicle (CV) volumes, effective market execution, and rigorous cost management, the company said on Thursday. Revenue from operations for the period stood at ₹11,708.54 crore, up 9.5 per cent from ₹10,696.8 crore in the same quarter last year. Total expenses rose 9.3 per cent to ₹10,920.53 crore, against ₹9,994.97 crore a year earlier. The board on Thursday approved investments of around ₹300 crore in its e-Mobility as a Service (EMaaS) subsidiary Ohm Global Mobility, and another ₹5.7 crore in the bus body and coach-building arm Vishwa Buses and Coaches (VBCL). 'Ashok Leyland has delivered a robust Q1 performance, exceeding expectations through effective market execution while maintaining rigorous cost management. For the tenth quarter in a row, we have registered double-digit EBITDA margin,' said Dheeraj Hinduja, chairperson, Ashok Leyland. EBITDA for Q1 FY26 was ₹970 crore, with a margin of 11.1 per cent, compared with ₹911 crore and 10.6 per cent in Q1 FY25. The company remained cash positive at the end of Q1 FY26 at ₹821 crore. 'Our electric mobility subsidiary, Switch Mobility, continues to gain good traction and has achieved positive EBITDA. We are redoubling our efforts in the international markets and Defence business. Reinforcing our product superiority and strong customer orientation, we are sharpening our focus to play a pivotal role in our industry,' he added. Ashok Leyland recorded its highest-ever quarterly CV volumes of 44,238 units in the first quarter. The domestic medium and heavy commercial vehicle (MHCV) industry remained largely flat on the high base of last year's Q1. Ashok Leyland's MHCV truck volumes (excluding Defence) grew 2 per cent, with its year-on-year market share rising from 28.9 per cent to 30.7 per cent. MHCV bus total industry volume (excluding EVs) grew 5 per cent, with Ashok Leyland maintaining its domestic market leadership in MHCV buses. 'We are happy to report simultaneous increases in market share and operating margins. This reinforces our strategy to deliver profitable growth through superior products and best-in-class customer service. Our focus on growing our non-CV portfolio is also helping us deliver record performances in many quarters in a row. Our priority remains achieving mid-teen EBITDA margins in the medium term, while advancing our commitment to future-ready technologies,' said Shenu Agarwal, managing director and chief executive officer, Ashok Leyland. Light commercial vehicle (LCV) domestic Q1 volume at 15,566 units was the highest ever for the quarter. Export volume grew 29 per cent year-on-year to 3,011 units. 'We don't have any impact as a result of this tariff. Exports in Q1 were at an all-time high mainly due to West Asia, SAARC, and Africa. This year, we could achieve the highest sales in the export market,' Hinduja added.
Business Standard
2 days ago
- Automotive
- Business Standard
Ashok Leyland gains after Q1 PAT rises 13% YoY to Rs 594 cr
Ashok Leyland added 1.17% to Rs 121.10 after the company reported a 12.96% rise in standalone net profit to Rs 593.73 crore in Q1 FY26, compared to Rs 525.58 crore posted in Q1 FY25. Revenue from operations increased 1.46% year-on-year (YoY) to Rs 8,724.51 crore in the quarter ended 30 June 2025. Profit before tax (PBT) stood at Rs 797.73 crore in Q1 FY26, marking a growth of 13.72% over Rs 701.44 crore reported in the same quarter last year. EBITDA rose by 6.47% YoY to Rs 970 crore in Q1 FY26. The EBITDA margin also improved to 11.1% in Q1 FY26, up from 10.6% reported in Q1 FY25. The Company continues to be cash positive at end of Q1 FY26 at Rs 821 crore. The company stated that the domestic medium and heavy commercial vehicle (MHCV) industry remained almost flat due to the high base in last years Q1. Ashok Leylands MHCV truck volumes (excluding Defence) grew by 2%, with its year-on-year market share increasing from 28.9% to 30.7%. The MHCV bus total industry volume (excluding electric vehicles) grew by 5%, with Ashok Leyland maintaining its domestic market leadership position in MHCV buses. Light commercial vehicle (LCV) domestic volumes reached an all-time high for Q1 at 15,566 units. Export volumes grew 29% YoY to 3,011 units. Additionally, the companys Power Solutions, Aftermarket, and Defence businesses contributed strongly to the overall financial performance. Dheeraj Hinduja, chairman, Ashok Leyland, said "Ashak Leyland has delivered a robust Ql performance, exceeding the expectations through effective market execution while maintaining rigorous cast management. Our electric mobility subsidiary, Switch Mobility, continues to gain good traction and has achieved positive EBITDA. We are redoubling our efforts in the international markets and Defence business. Reinforcing our product superiority and strong customer orientation, we are sharpening our focus to playa pivotal role in our industry. " Shenu Agarwal, Managing Directar & CEO, Ashok Leyland, added, "We are happy to report simultaneous increases in market share and operating margins. This reinforces our strategy to deliver profitable growth through superior products and best-in-class customer service. Our focus on growing our non-CV portfolio is also helping us deliver record performances in many quarters in a row. Our priority remains achieving mid-teen EBITDA margins in the medium term, while advancing our commitment to future -ready technologies." Meanwhile, the companys board has approved the investments in its wholly owned subsidiaries, subject to requisite approvals and other regulatory requirements. These include an investment of up to Rs 5.70 crore in Vishwa Buses and Coaches, as equity, to be made in one or more tranches, and an investment of up to Rs 300 crore in Ohm Global Mobility, also as equity and to be made in one or more tranches. 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.
Mint
3 days ago
- Automotive
- Mint
Ashok Leyland Q1 Results: Net profit rises 13% to ₹594 crore; margins expand to 11%
Ashok Leyland, the Indian flagship of the Hinduja Group, announced its June quarter results during market hours on Thursday, August 14, reporting a 13.4% year-on-year rise in consolidated net profit to ₹ 594 crore, compared to Rs525 crore in the same quarter last year. The figure also came in higher than analysts' estimates. The company reported its highest-ever Q1 revenue of ₹ 8,725 crore, up 1.5% from ₹ 8,598 crore in Q1FY25, along with a record Q1 in terms of CV volumes at 44,238 units. At the operating level, EBITDA came in at ₹ 970 crore, a 6.5% increase from ₹ 911 crore in Q1FY25, with margins expanding by 50 basis points to 11% from 10.6%, driven by cost-control measures. 'Domestic MHCV industry volumes remained almost flat on the high base of last year's Q1. Ashok Leyland's MHCV truck volumes (excluding Defence) grew 2%, registering a year-on-year market share increase from 28.9% to 30.7%. MHCV bus TIV (excluding EVs) grew by 5%. Ashok Leyland maintained its domestic market leadership position in MHCV buses,' the company said in its earnings filing. The company also reported its highest-ever Q1 LCV domestic volume at 15,566 units. Export volumes in Q1 grew 29% year-on-year to 3,011 units. The Power Solutions, Aftermarket, and Defence businesses also contributed strongly to the financial performance. Mr. Dheeraj Hinduja, Chairman, Ashok Leyland, said, "Ashok Leyland has delivered a robust Ql performance, exceeding the expectations through effective market execution while maintaining rigorous cast management."
Economic Times
3 days ago
- Automotive
- Economic Times
Ashok Leyland Q1 Results: Net profit jumps 13% to Rs 594 crore; revenue up 1.5%
Ashok Leyland on Thursday reported a standalone net profit of Rs 593.73 crore for Q1 FY26, up 13% year-on-year (YoY) from Rs 525.58 crore in the year-ago period. ADVERTISEMENT Standalone revenue from operations for the quarter ended June 2025 stood at Rs 8,724.51 crore, a marginal 1.5% rise YoY compared to Rs 8,598.53 crore in the June 2024 quarter. On a consolidated basis, the Hinduja Group's flagship reported a net profit attributable to owners of the company at Rs 611.07 crore, marking a 20% YoY jump from Rs 509.15 crore in the corresponding quarter last year. The quarter marked Ashok Leyland's highest-ever commercial vehicle volumes at 44,238 units and its highest Q1 revenue at Rs 8,725 crore. The company also posted record EBITDA and profit after tax at Rs 970 crore and Rs 594 crore, respectively, compared with Rs 911 crore and Rs 526 crore a year domestic medium and heavy commercial vehicle (MHCV) industry was largely flat on last year's high base, but Ashok Leyland's MHCV truck volumes (excluding defence) rose 2%, lifting its market share from 28.9% to 30.7% YoY. In buses, the MHCV segment (excluding electric vehicles) expanded 5%, with the company maintaining its leadership commercial vehicle (LCV) volumes for the quarter touched an all-time Q1 high at 15,566 units, while exports surged 29% to 3,011 units. The Power Solutions, Aftermarket, and Defence businesses also contributed strongly to the performance. EBITDA margin improved to 11.1% in Q1 FY26 from 10.6% a year earlier, with the company remaining cash-positive at Rs 821 crore at the quarter's end. ADVERTISEMENT 'Ashok Leyland has delivered a robust Q1 performance, exceeding expectations through effective market execution while maintaining rigorous cost management,' said Dheeraj Hinduja, Chairman. Unlock 500+ Stock Recos on App 'Our electric mobility subsidiary, Switch Mobility, continues to gain traction and has achieved positive EBITDA. We are redoubling our efforts in international markets and the Defence business. Reinforcing our product superiority and strong customer orientation, we are sharpening our focus to play a pivotal role in our industry,' he added. ADVERTISEMENT Shenu Agarwal, Managing Director & CEO, said, 'We are happy to report simultaneous increases in market share and operating margins... Our focus on growing our non-CV portfolio is also helping us deliver record performances in many quarters in a row.'The company said its key goal is to achieve mid-teen EBITDA margins over the medium term while continuing to develop future-ready technologies. ADVERTISEMENT Also read | Paytm shares up 17% so far in 2025. Should you ride the rally or wait for a dip? (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
