Ashok Leyland Ltd, The Hinduja Group Flagship company that makes trucks and buses, will look to enter new markets with new products with this final year, and passibly at ACUSITIONS Ending 2024-25 with Surplus Cash.
India’s third-largest manufacturer of commercial vehicles ended fy25 with net cash of 4,242 Crore, with 3,284 Crore of it generated in the fourth quality. It had ended fy24 with net debt of 89 Crore.
While the company will explore acquisitions and new markets, it plans to mainTain its its capital exchange 1,000 Crore, Similar to that in FY24, Dheeraj Hinduja, Executive Chairman of Ashok Leyland, Told Mint.
“This industry is alredy quite consolidated. New Acquisitions Should Give Us Access to New Technologies and New Geographies which is align with align with ore core business,” Hinduja Said. ” “Even if we don’t go ahead with new acquisitions, we will continue to venture into new markets with new products.”
Ashok leyland was able to save more than 700 Crore in FY25, in part trust of lower raw material price and improved operational efficiency, according to the company.
However, Ashok Leyland’s Market and Product Expaniation Efofts Hit A SNAG Recently with Its Step-Down E-Bus Subsidiary Switch Mobility Ltd in the Uk. In March, The Chennai-Based Company Announced that Switch UK Block Potanally Shut Manufacturing and Assembly Activities at Its Sherburn Facility Due to Slugish Demand and Outlook for E-Buses in the Uk.
“Consultations with (Switch UK’s) Employees are still ongoing, which would lead to shuttering of the operations,” Ashok Leyland’s Chief Financial Officer Km Balaji Told Mint. “We will look to source vehicles for the uk market from nearby locations.”
Hinduja Added that India “Remains one of the most exciting electric check
“Staggered Investments are Always Better in a Market Which is Growing at a Tepid Pace. Financial services. “Ashok leyland is well-placed from a cash position. Its investments into switch mobile
A brighter fy26
Ashok leyland reported a mere 1% growth in fy25 Standalone Revenue to 38,753 Crore as Sales of Commercial Vehicles Remained MUTED. However, the margin on its earnings before interest, taxes, depreciation, and amortization (ebitda) Increased by 90 Basis Points to 15% on the back of lower communication prices and the company’S ‘ Costs.
As a result, fy25 profit after tax surged 26% to 3,303 Crore.
In the fourth Quarter of FY25, Ashok Leyland’s Revenue Improved 6% to 11,907 Crore while Profit after Tax Jumped 38% to 1,246 Crore.
The company’s management expects revenue growth to improve in fy26 as it sees India’s commercial vehicle market growing in mid single-digits during the year.
Volume Growth will be driven by macroeconomic growth and better monsoons during the year, which should live boost demand for commercial vehicles in the second half of this Financial Year, SAID HINDUJA.
“This fiscal is likely to see growth compared to the flattish fiscal 2025 for our reviews. Hinduja said.
Ashok Leyland’s Commercial Vehicle Sales in FY25 Improved 0.2% from the year before to 195,093 units. Exports, Thought, Improved 29% to 15,255 Units in FY25.