Latest news with #ShenuAgarwal
Time of India
29-05-2025
- Automotive
- Time of India
Industry smells a jackpot as India's truck fleet hits 10-yr high
India's ageing fleet of medium and heavy commercial vehicles (M&HCVs) is expected to trigger a significant rise in replacement demand, as truck makers and analysts see fleet operators shifting towards newer, more efficient models with better technology and faster turnaround times. According to data from manufacturers and ratings agency ICRA , the average age of M&HCV trucks on Indian roads has touched a record high of 10 years. This is the highest it has been in two decades. The sharp increase in fleet age is a result of deferred truck purchases during the Covid-19 pandemic and weak sales in recent years. 'The elevated level of vehicle ageing was fuelled by deferment of new vehicle purchases by fleet owners during the pandemic period, and also with the domestic M&HCV (trucks) volumes staying flattish YoY in FY2024 and registering a 4% YoY decline in FY2025,' ToI cited Kinjal Shah, senior vice-president at ICRA. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Small Electric Car for Seniors in Iraq: Prices That Will Surprise You Electric Cars | Search Ads Undo 'With this, the average M&HCV vehicle age presently remains the highest in the past two decades, which along with the mandatory scrapping of govt vehicles older than 15 years from April 1, 2023, augurs well for replacement demand in the medium term,' she added. Manufacturers have already begun to prepare for what they expect to be a surge in demand. Shenu Agarwal, managing director and CEO of Ashok Leyland , said, 'The outlook for the truck industry in FY26 takes into account the all-time high ageing of the truck fleet which means fleet replacement will definitely happen.' He added that the expected increase in demand will be led by the M&HCV segment, 'because the fleet is higher vintage there.' Live Events Industry data suggests that between FY2010 and now, around 37 lakh trucks have been sold across BS0 to BS6 emission levels. In just the last four years, about 10 lakh BS6 trucks have entered the market, while another 8.5 lakh units of BS4 vehicles continue to operate. That means for nearly 50% of the trucks sold in the last 15 years, the average age is over 11 years — a clear indicator that a large chunk of India's commercial fleet is nearing the end of its useful life and ripe for replacement. Vinod Aggarwal, managing director and CEO of Volvo Eicher Commercial Vehicles , said, 'Replacement demand will be very strong particularly since with improved road infrastructure, the new trucks are running around 15,000 km to 20,000 km per month compared to around 8,000 km to 10,000 km that older trucks manage.' He also pointed out that newer trucks, equipped with telematics, are designed for more intensive use and faster turnaround times, which further increases their appeal. At present, replacement sales account for 60% of all medium and heavy truck purchases. While total sales in the segment have not yet rebounded to their peak of 2,95,000 units recorded in FY2019 — with FY2025 sales at 2,48,000 units — there are signs of improvement. 'The M&HCV segment is migrating towards higher tonnage and payload wise FY25 truck sales is 10% higher,' said Aggarwal. (with ToI inputs)
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.
The Hindu
23-05-2025
- Automotive
- The Hindu
Ashok Leyland Q4 PAT rises 32% to Rs 1,130 crore, board okays 1:1 bonus share issue
Ashok Leyland Ltd for the fourth quarter ended March 31, 2025 reported consolidated net profit attributed to the owners of the company at Rs 1,130 crore as compared with Rs 853 crore in the year ago period, up 32%. The company's consolidated revenue from operations grew 6% Year on Year (YoY) to Rs 12,868 crore. Cash generated during the quarter was Rs. 3,284 crore. For FY25 the company's consolidated net profit attributed to owners of the company increased 25% to Rs 3,107 crore. Revenue from operations for FY25 grew 3% YoY to Rs 42,140 crore. The company ended the financial year with net cash of Rs. 4,242 crore, as against net debt of Rs. 89 crore at the end of the previous year. The board has declared bonus shares in the ratio of 1:1 subject to approval of shareholders. The company had paid two interim dividends, viz. first interim dividend of Rs. 2 per share in November 2024, and subsequently the second interim dividend of Rs. 4.25 per share in May 2025, aggregating to Rs. 6.25 per share of face value Rs. 1 (625%).'The second interim dividend may be considered as final dividend,' the company said. Dheeraj Hinduja, Chairman, Ashok Leyland Ltd. 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 the company's strong financial performance in the last three years, the Board has approved a 1:1 bonus share issue. 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. Shenu Agarwal, Managing Director & CEO, Ashok Leyland Ltd said 'FY25 has been another landmark year for us. We've 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,' he said. '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,' he added. The overall CV volumes at 195,093 units were very close to the previous high of 197,366. MHCV buses recorded ever highest volume of 21,249 units during the year. Export volume was also one of the highest in many years at 15,255 units, registering a growth of 29% over PY (11,853). The Power Solutions and Defence Businesses also posted impressive growth. The robust performance was driven by exceptional contribution from all business segments and well supported by the subsidiaries. 'For securing the future readiness, the alternate propulsion product portfolio is shaping well. Apart from electric vehicles led by Switch Mobility, which is on a growth trajectory, initiatives in LNG and Hydrogen are well under way,' Mr Agarwal said adding 'battery Electric and LNG vehicles will be adopter faster than Hydrogen.' In FY26 the company will have a capex of Rs 1,000 crore and is expecting breakeven at its Switch Mobility subsidiary.
Time of India
23-05-2025
- Automotive
- Time of India
Ashok Leyland's Switch Mobility eyes breakeven this fiscal
Ashok Leyland 's EV subsidiary, Switch Mobility , plans to achieve break-even in the current fiscal year after turning EBITDA-positive in FY25, said a top company official. Switch Mobility closed Q4 FY25 with a strong double-digit EBITDA margin. Ashok Leyland acquired Switch Mobility in 2020 from the UK-based Optare Plc. The EV arm currently has an order book of over 1,800 electric buses , which will support its robust business plans, said Dheeraj Hinduja, Chairman of Ashok Leyland, during the company's Q4 earnings call. Switch Mobility's product portfolio includes the EiV 12, EiV 22, and IeV 4, with manufacturing units in Chennai, Tamil Nadu, and the UK. The company aims to strengthen its position in the electric commercial vehicle market with multiple launches lined up for FY26. On Friday, Ashok Leyland, the Indian flagship of the Hinduja Group, reported its highest-ever quarterly and annual revenue, EBITDA, and profit after tax (PAT) for FY25. The company posted a revenue of ₹38,753 crore for the fiscal year, with exports registering a 29 per cent growth. The company also ended FY25 with a strong cash position, after accounting for dividends, capex, and investments in group companies. Leveraging this surplus, Ashok Leyland plans to infuse capital into Switch Mobility, Hinduja Leyland Finance, and other group entities based on evolving market needs, said Shenu Agarwal , Managing Director & CEO, Ashok Leyland. Ashok Leyland's Future Outlook The commercial vehicle giant will continue investing in alternative fuels, including LNG, hydrogen, and EVs—such as its 55-ton electric tractor-trailers. For FY26, the company has planned a capex of ₹1,000 crore, in line with the previous fiscal year. The company informed that it will use its strong cash reserves to drive growth in product innovation, advanced technologies, and enhanced customer experience. The top management remains optimistic about the current fiscal, citing favourable macroeconomic indicators such as a positive monsoon outlook, government capex push, and a recovery in freight movement. Additionally, pent-up demand in the bus segment is expected to further boost sales. Ambitious Targets Ahead Currently positioned among the world's top 20 commercial vehicle manufacturers, Ashok Leyland has set its sights on breaking into the global top 10, according to company officials. The company is also focused on expanding its footprint in the tractor-trailer and intermediate commercial vehicle (ICV) segments, which have shown strong growth. A Pan-India dealer network expansion is underway to support these efforts. To reward shareholders, the Board has approved a 1:1 bonus share issue, citing strong and consistent financial performance.
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Business Standard
23-05-2025
- Automotive
- Business Standard
Ashok Leyland Q4 profit jumps 32% to ₹1,130 crore, bonus shares announced
Ashok Leyland on Thursday reported a consolidated net profit of ₹1,130.09 crore for the quarter ended March 31, 2025 (Q4 FY25), a 32.4 per cent increase from ₹853.41 crore in the same quarter last year (Q4 FY24). On a sequential basis, profit jumped 48.3 per cent from ₹761.92 crore reported in Q3 FY25. The commercial vehicle manufacturer's consolidated revenue from operations stood at ₹14,695.65 crore in Q4 FY25, up 8.5 per cent from ₹13,542.37 crore in the year-ago period. Compared to the previous quarter, revenue rose 22.5 per cent from ₹11,995.21 crore. "The company is in a very strong cash position, ending the year with a cash surplus of ₹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 premiumisation journey with high focus on delivering exceptional value to our customers," said Shenu Agarwal, MD and CEO at Ashok Leyland. Ashok Leyland FY25 result For the entire year, Ashok Leyland reported a consolidated net profit of ₹3,100.80 crore, marking a strong growth of 24.8 per cent compared to ₹2,483.52 crore in FY24. The company's consolidated revenue from operations also rose by 6.2 per cent year-on-year, reaching ₹48,535.14 crore in FY25, up from ₹45,703.34 crore in the previous fiscal. Ashok Leyland dividend and bonus shares In an exchange filing, the company said that its board of directors have approved two interim dividends of ₹2 per equity share on November 2024, of ₹4.25 per equity share on May 16, 2025. Accordingly, the total dividend declared for the year amounts to ₹6.25 per share. Moreover, the board has also approved the issue of bonus equity shares in the ratio 1 : 1. "Given the company's 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 per cent, or ₹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," Dheeraj Hinduja, chairman of Ashok Leyland, said. Share of Ashok Leyland last traded at ₹239.60 apiece on BSE at the close of the market on Friday, after the announcement of result.
