Ashok Leyland, a manufacturer of heavy commercial vehicles, declared a net profit of Rs 770 crore for the quarter ending in September. This is a 37% increase compared to the same time last year.

“Owing to continued improvement in the company’s fiscal performance and a positive outlook for the balance half of the year, the Board has recommended an interim dividend of Rs 2 per share on face value of Re 1,” a statement from the business said.

The Hinduja group firm reported an 11.6% increase in EBITDA for the quarter, coming in at Rs 1,017 crore, compared to an 11.2% increase, or Rs 1,080 crore, in the same time previous year.

Over 31% of the domestic MHCV market is still occupied by Ashok Leyland. When it came to buses, the firm was still on top. A business statement also indicated that the addressable sectors of the domestic light commercial vehicle (LCV) market had increased their share during the first half of the year.

In comparison to Q2 FY’24, when it was 29,947 units sold, the Chennai-based business reported MHCV domestic sales volume of 25,685. Compared to Q2 of the previous year, LCV volume was 16,629 instead of 16,998. There was a 14% increase in quarterly export volumes, reaching 3,310 nos.

In the current fiscal, the defense, power solutions, and aftermarket companies are anticipated to maintain their strong performance and report excellent growth. Throughout the second quarter, the firm introduced new items to the tipper, bus, haulage, and LCV markets, further diversifying its creative product portfolio.

According to the corporation, efforts to expand the distribution network have also persisted.

“Our industry stands to gain from the expected second-half performance of the Indian economy,” said Dheeraj Hinduja, executive chairman of Ashok Leyland. Government investment on capital expenditures has resumed, and the monsoons have been favorable, so we are positive about the industry’s prospects for the second half of the year. We were able to pull off a strong second quarter overall result thanks to our cost and technology superiority. Additionally, in order to achieve our highest performance to date this fiscal year, we are stepping up our growth plan in our target areas of SAARC, the Middle East, Africa, and Asia. The development of innovative goods that use alternative fuels is a priority for us. An order book of over 2,000 buses indicates that Switch is doing well.

Also, our PAT for Q2FY25 is at an all-time high, according to MD & CEO Shenu Agarwal. This is the seventh consecutive quarter of EBITDA that is in the double digits, thanks to sequential and year-over-year improvements in our EBITDA margins. In the medium run, we should be able to reach an EBITDA in the mid-teens.