Ashok Leyland, the Indian flagship of the Hinduja Group, has reported a robust financial performance for FY25, marked by significant growth in net profit and strategic initiatives in the electric vehicle sector through its subsidiary, Switch Mobility. The company's consolidated efforts reflect a strong focus on innovation, market expansion, and shareholder value.

Financial Highlights for FY25

Ashok Leyland reported a 26% rise in net profit for FY25, reaching ₹3,303 crore, compared to ₹2,618 crore in the previous fiscal year. Revenue for FY25 saw a marginal increase of 1% to ₹38,753 crore. The company's EBITDA reached 15%, amounting to ₹1791 crore. The company concluded the year with a strong net cash position of ₹4,242 crore, a substantial turnaround from a net debt of ₹89 crore at the end of the previous year.

Dividend and Bonus Shares

Ashok Leyland has rewarded its shareholders with substantial dividends, including two interim dividends totaling ₹6.25 per share. The Board of Directors has approved a 1:1 bonus share issue, subject to shareholder approval, reflecting the company's strong financial performance over the past three years.

Sales and Export Volumes

The company's overall commercial vehicle (CV) volumes reached 195,093 units, closely approaching the previous high. MHCV bus volumes hit a record of 21,249 units. Export volumes were strong, with 15,255 units, a 29% increase over the previous year. The Power Solutions and Defence Businesses also demonstrated impressive growth.

Strategic Focus on Alternative Propulsion

Ashok Leyland is focused on future readiness through its alternate propulsion product portfolio, with significant initiatives in electric vehicles led by Switch Mobility, as well as LNG and Hydrogen technologies.

Switch Mobility's Performance and Outlook

Switch Mobility, Ashok Leyland’s EV arm, closed Q4 FY25 with a strong double-digit EBITDA margin and aims to achieve break-even in the current fiscal year. The company has an order book of over 1,800 electric buses. Switch Mobility’s product portfolio includes models like EiV 12, EiV 22, and IeV 4, with manufacturing units in Chennai, Tamil Nadu, and the UK. Ashok Leyland plans to infuse capital into Switch Mobility to support its growth.

Future Investments and Expansion

The commercial vehicle giant will continue investing in alternative fuels, including LNG, hydrogen, and EVs. For FY26, the company has planned a capex of ₹1,000 crore. Ashok Leyland is also focused on expanding its footprint in the tractor-trailer and intermediate commercial vehicle (ICV) segments, with a Pan-India dealer network expansion underway. The company aims to break into the global top 10 commercial vehicle manufacturers.

Market Outlook and Ambitious Targets

The top management is optimistic about the current fiscal year, citing favorable macroeconomic indicators and pent-up demand in the bus segment. Ashok Leyland is leveraging its strong cash reserves to drive growth in product innovation, advanced technologies, and enhanced customer experience.