Ashok Leyland records strong export growth driven by SAARC, GCC, African markets

Published 2 months ago• 3 minute read

The export demand is driven by multiple markets such as SAARC (South Asian Association for Regional Cooperation), Africa, and GCC (Gulf Cooperation Council). The top management has also revealed plans to invest INR 500 crore in Optare PLC, the holding company of Ashok Leyland’s electric arm, Switch Mobility.

<p>Ashok Leyland has also turned cash positive in Q3 FY25, with a net cash of INR 958 crore, compared to a net debt of INR 1,747 crore at the end of FY24.</p> — Ashok Leyland has also turned cash positive in Q3 FY25, with a net cash of INR 958 crore, compared to a net debt of INR 1,747 crore at the end of FY24.

Hinduja Group flagship, Ashok Leyland, has reported a 33% growth in the December quarter, with 4,151 unit sales in Q3 FY25, compared to 3,128 units in the same period last year. The demand is driven by multiple markets such as SAARC (South Asian Association for Regional Cooperation), Africa, and GCC (Gulf Cooperation Council). The company has also seen good traction in the April-January period, with a 26% year-on-year growth.

“Our export business is driven by our continued focus on export-specific products and our strong local presence in the GCC, SAARC, and African markets,” stated Shenu Agarwal, Managing Director & CEO of Ashok Leyland. The GCC comprises approximately 30% of the company’s exports.

The Chennai-based commercial vehicle manufacturer has also revealed plans to invest INR 500 crore in Optare PLC, the holding company of Ashok Leyland’s electric arm, Switch Mobility. Additionally, the company will infuse INR 200 crore into Hinduja Finance, as stated by K. M. Balaji, CFO, during the post-earnings call.

The company is optimistic about the ongoing quarter and the upcoming years, expecting a surge in exports from the GCC, Africa, SAARC, and other regions. The management also mentioned that the company may roll out customised products for ASEAN (Association of Southeast Asian Nations) markets.

The injection of INR 500 crore will boost the ongoing capital expenditure and expansion plans, stated Dheeraj Hinduja, Executive Chairman of Ashok Leyland. The company had announced the injection of INR 1,200 crore into its electric mobility arm, Switch Mobility, through external sources last year.

Switch Mobility currently has an order book for more than 1,800 electric buses, including 100 buses to be exported to the Mauritius market.

The company expects to infuse INR 800-1,000 crore in capital expenditure in the ongoing financial year. Ashok Leyland has also turned cash positive in Q3 FY25, with a net cash of INR 958 crore, compared to a net debt of INR 1,747 crore at the end of FY24. The revenue for Q3 FY25 is INR 9,479 crore, with an EBITDA of INR 1,211 crore. Ashok Leyland reported a net profit of INR 762 crore.