Ashok Leyland (ASHOKLEY) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 net profit rose 37% YoY to INR 770 crore, marking an all-time high, with EBITDA margin improving to 11.6% for the seventh consecutive quarter of double-digit EBITDA.

• Revenue declined 9% YoY to INR 8,769 crore, but improved sequentially from Q1 FY25.

• Domestic M&HCV truck volumes fell 18% YoY, while bus volumes rose 8% YoY; overall domestic M&HCV volume was 25,685 units and market share remained above 31%.

• Export volumes grew 14% YoY and 42% sequentially, with international expansion in SAARC, Middle East, Africa, and Asia as a strategic priority.

• Interim dividend of INR 2 per share declared, payable on or before December 7, 2024.

Financial highlights

• Standalone revenue for Q2 FY25 was INR 8,769 crore, down 9% YoY but up from INR 8,598.53 crore in Q1 FY25.

• Standalone net profit for Q2 FY25 was INR 770 crore, up from INR 525.58 crore in Q1 FY25 and up 37% YoY.

• EBITDA for Q2 FY25 stood at INR 1,017 crore, margin at 11.6%.

• Net debt reduced to INR 501 crore from INR 1,139 crore YoY.

• Material cost as % of revenue improved to 71.2% from 73.5% YoY.

Outlook and guidance

• Management remains optimistic for H2 FY25, expecting flat or positive growth, with full-year industry growth in low single digits.

• Focus on profitability, premiumization, cost compression, and customer service.

• CapEx guidance for FY25 at INR 750–800 crore; potential investments in subsidiaries up to INR 750 crore.

• International expansion and growth in non-vehicle, defense, and international businesses prioritized.

• Management targets mid-teen EBITDA margin and 35% M&HCV market share.