Hinduja Group Company Reports 7th Consecutive Double-Digit EBITDA Growth!
Revealing the Surprising Factors Behind Ashok Leyland’s 7th Consecutive Quarter of Double-Digit EBITDA and Skyrocketing Stock Performance!
Ashok Leyland, the flagship of the Hinduja Group, has posted a record profit for Q2, with a 37 per cent rise in net profit to Rs 770 crore, compared to Rs561 crore in the same period last year. The results exceeded market expectations, with profit also surpassing CNBC-TV18’s estimate of Rs 561 crore.
Revenue Decline, but Above Estimates
The company’s topline saw a 9per cent decline year-on-year, falling to Rs 8,769 crore, though it beat the anticipated Rs 8,764 crore. A year ago, revenue was Rs 9,638 crore, showing a significant drop despite strong profit growth.
Margins and EBITDA Show Improvement
Ashok Leyland reported a 5.8 per cent increase in EBITDA to Rs 1,017 crore, exceeding Street expectations of Rs 954 crore. The EBITDA margin rose to 11.6 per cent, improving by 40 basis points from 11.2 per cent last year, and above the expected 10.9 per cent.
Dividend Declared for Shareholders
The company’s board has announced an interim dividend of Rs 2 per equity share for FY 2024-25. The dividend will be paid by December 7, with the record date for eligibility set for November 19, 2024.
Market Leadership and Optimism for the Future
Ashok Leyland continues to hold a 31 per cent share in the domestic MHCV market and leads in the bus segment. The company is optimistic about future growth, with strong macroeconomic fundamentals and increased government spending expected to drive industry momentum.
CEO’s Comments on Growth Trajectory
Shenu Agarwal, MD and CEO, highlighted that Q2FY25 delivered an all-time high profit after tax (PAT), marking the seventh consecutive quarter of double-digit EBITDA. He reaffirmed the company’s goal to achieve mid-teen EBITDA in the medium term.