Ashok Leyland Reports Mixed Q1 Financial Results

Ashok Leyland reported a consolidated net profit of ₹509 crore for Q1 FY25, marking a 6% year-on-year decline, primarily due to a one-time deferred tax gain in the previous fiscal. Despite this drop, the company achieved its highest-ever commercial vehicle (CV) volumes of 43,893 units and total income rose to ₹10,754 crore, up from ₹9,735 crore a year ago. Managing Director Shenu Agarwal remains optimistic about the commercial vehicle industry's growth, challenging earlier forecasts of a 4-7% decline and asserting that the industry will likely remain stable or grow. The company plans to invest ₹750-800 crore in capital expenditure for new product development and sustenance of existing facilities. Additionally, Ashok Leyland's electric vehicle arm, Switch Mobility, is advancing its roadmap without immediate fundraising needs. Overall, the company continues to see strong demand across its business units, including in the power solutions and defense sectors.