Ashok Leyland Shares Climb on Strong Quarterly Performance
Early Trading Surge for Ashok Leyland Shares
In early trade on January 6, a 4% increase was observed in the shares of Ashok Leyland Limited, reaching Rs 186. This rise followed the announcement of a 60% profit surge to Rs 580 crore, attributed to robust demand across both the Medium & Heavy Commercial Vehicles (MHCV) and Light Commercial Vehicles (LCV) segments during the October-December quarter.
Quarterly Revenue Growth Reported
A growth of 2.7% in revenues was reported by Ashok Leyland, the Indian flagship of the Hinduja Group, in the third quarter of the current financial year, with figures reaching Rs 9,273 crore. This was an increase from Rs 9,030 crore in Q3FY23.
Stock Performance and Market Reaction
By 9:22 am, Ashok Leyland shares were traded at Rs 183, marking a 2.4% increase from the previous close on the NSE. The stock has seen a nearly 8% gain in the last three months.
EBITDA Achievements Highlighted
An EBITDA of Rs 1,114 crore was reported by Ashok Leyland for the quarter, up significantly from Rs 797 crore in Q3FY23. This achievement reflects the company’s consistent double-digit percentage EBITDA across all three quarters of the fiscal year.
Management’s Optimistic Outlook
Shenu Agarwal, managing director of the company, highlighted in a regulatory filing that the quarter benefited from good volumes, better price realization, and higher cost savings, leading to improved profitability. The company’s focus on new differentiated products, cost optimization, and pricing discipline was underscored. Confidence in the growth of the Commercial Vehicle (CV) industry over the medium and long term was expressed, bolstered by favorable macroeconomic factors.
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