- Ashok Leyland‘s net income for the first quarter was 5.94 billion rupees, reflecting a 13% increase from the previous year, closely matching the estimated 5.98 billion rupees.
- Revenue stood at 87.2 billion rupees, a 1.4% rise year-over-year, though slightly below the projection of 87.92 billion rupees.
- Total costs increased by 0.8% compared to the previous year, amounting to 79.8 billion rupees.
- Raw material costs saw a 3.1% increase, reaching 63.9 billion rupees.
- Other income significantly rose to 528.5 million rupees, compared to 223.4 million rupees the previous year.
- EBITDA was 9.7 billion rupees, marking a 6.5% increase year-over-year.
- The company’s electric mobility unit, Switch Mobility, is performing well and has achieved positive EBITDA.
- CEO Shenu Agarwal emphasized the company’s focus on attaining mid-teen EBITDA margins over the medium term.
- Market analyst ratings for the company include 32 buys, 7 holds, and 3 sells.
Ashok Leyland on Smartkarma
Analysts on Smartkarma are closely following Ashok Leyland, with Sreemant Dudhoria, CFA, and Nimish Maheshwari providing valuable insights. Dudhoria’s report titled “Ashok Leyland (AL IN)-Robust Growth; Value Unlocking from Subsidiary Ahead” highlights the company’s strong Q4FY25 performance, driven by factors like cost efficiency, premium product mix, and EBITDA margin improvement. The upcoming HLF IPO and strategic moves position the company for significant value unlocking and improved subsidiary contribution in FY26.
On the other hand, Maheshwari’s analysis, “Ashok Leyland Restructuring: Switch UK Winds Down & Switch India’s Strategic Pivot,” focuses on the company’s decision to shut its UK EV subsidiary and concentrate on India and UAE plants to enhance profitability and tap into the high-growth EV market. This strategic shift is expected to curb cash burn, boost earnings, and align capital towards the lucrative Indian EV sector, ultimately improving group-level profitability and return metrics.
A look at Ashok Leyland Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Ashok Leyland seems to have a positive long-term outlook. With high scores in Dividend and Growth, the company appears to be focusing on rewarding shareholders and expanding its business. A strong Momentum score suggests that Ashok Leyland is making significant strides in the market. Although the company’s Value and Resilience scores are not as high as Dividend and Growth, they still indicate decent performance in these areas. Overall, Ashok Leyland’s Smart Scores imply a promising future for the company.
Ashok Leyland Limited is a manufacturer of various commercial vehicles and engines, operating domestically and internationally. Specializing in medium and heavy-duty vehicles, including buses, tractors, haulage trucks, and defense sector vehicles, the company also produces engines and spare parts. With a diverse product portfolio and a focus on both domestic and global markets, Ashok Leyland showcases a strong presence in the automotive industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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