Ashok Leyland Reports Record Profits, Announces 1:1 Bonus Share Issue

Ashok Leyland Reports Record Profits, Announces 1:1 Bonus Share Issue

Ashok Leyland Limited, the Indian flagship of the Hinduja Group, announced record financial performance for the fourth quarter and full year ending March 31, 2025. The Chennai-based commercial vehicle manufacturer reported its highest-ever quarterly and annual revenues, EBITDA, and profit after tax.

The company’s profit after tax jumped 26 percent to Rs 3,303 crore for FY25 compared to Rs 2,618 crore in the previous year. Operating profit before tax increased 9 percent to Rs 4,245 crore. The EBITDA margin improved to 12.7 percent in FY25 from 12.0 percent in FY24.

For the fourth quarter alone, PAT surged 38.4 percent to Rs 1,246 crore against Rs 900 crore in the same period last year. The quarterly EBITDA reached 15 percent, up from 14.1 percent year-on-year. Cash generation during the quarter stood at Rs 3,284 crore.

The board of directors approved a 1:1 bonus share issue, subject to shareholder approval through postal ballot. This means shareholders will receive one additional share for every share held. The company also declared two interim dividends totaling Rs 6.25 per share, representing 625 percent of the face value.

Ashok Leyland ended the financial year with net cash of Rs 4,242 crore, compared to net debt of Rs 89 crore at the end of the previous year, demonstrating significant improvement in financial position.

The company’s commercial vehicle volumes reached 195,093 units, close to the previous high of 197,366 units. Medium and heavy commercial vehicle buses recorded the highest-ever volume of 21,249 units during the year. Export volumes also performed well at 15,255 units, registering 29 percent growth over the previous year.

Ashok Leyland, established in 1948, is one of India’s leading commercial vehicle manufacturers. The company produces trucks, buses, light commercial vehicles, and defense vehicles. It is part of the Hinduja Group and has manufacturing facilities across India with a significant presence in international markets.

Chairman Dheeraj Hinduja said the record-breaking numbers reflect the resilience of the business and customer trust. Managing Director and CEO Shenu Agarwal highlighted that the company achieved its medium-term goal of mid-teen EBITDA in the fourth quarter and emphasized the strong cash position for future investments.

The company’s alternate propulsion product portfolio is developing well, with electric vehicles led by Switch Mobility on a growth trajectory. Initiatives in LNG and hydrogen are also underway as the company prepares for future mobility requirements.

The power solutions and defense businesses also posted growth during the year, with robust performance driven by contributions from all business segments and subsidiaries. The company’s financial results were reviewed by the audit committee and approved by the board of directors on May 23, 2025.

This article first appeared on Autocar

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