Ashok Leyland shares gain 4% on robust Q3 earnings

Shares of Ashok Leyland Limited traded 4 percent higher to Rs 186 in early trade on January 6 after the company announced a 60 percent surge in profit to Rs 580 crore riding on strong demand for its products both in the MHCV and LCV segments in the October-December quarter.

The Indian flagship of the Hinduja Group reported revenues of Rs 9,273 crore in the third quarter of the current financial year, reflecting a growth of 2.7 percent, compared to Rs 9,030 crore in Q3FY23.

At 9:22am, the counter was trading at Rs 183, up 2.4 percent from the previous close on the NSE. In the last three months, the stock has gained nearly 8 percent.

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Ashok Leyland reported an EBITDA of Rs 1,114 crore, a notable increase from Rs 797 crore in Q3FY23, reflecting a consistent achievement of double-digit percentage EBITDA for all three quarters of the fiscal year.

“The current quarter saw the confluence of good volumes, better price realisation, and higher cost savings, thus helping us achieve better profitability,” Shenu Agarwal, managing director of the company, said in a regulatory filing. “On back of new differentiated products, deeper focus on cost optimisation, and with continued discipline on pricing, we shall relentlessly pursue improvement in profitability. We remain confident and optimistic about the growth of the CV industry in the medium and long term as macroeconomic factors continue to be favorable.”

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