Ashok Leyland Ltd — Financial Report

Company Overview Ashok Leyland is India’s second-largest commercial vehicle manufacturer and a flagship company of the Hinduja Group. It produces trucks, buses, engines, and vehicle-financing solutions, and is expanding into electric and hydrogen vehicle segments. Recent Financial Performance (FY25 & Q4 FY25) • FY25 (full year): Revenues grew ~1% to ₹38,753 cr from ₹38,367 cr in FY24. EBITDA rose to ₹4,931 cr (12.7% margin), up from ₹4,607 cr (12.0%). Net profit increased 26% to ₹3,303 cr from ₹2,618 cr. The company moved from net debt of ₹89 cr in FY24 to a net cash position of ₹4,242 cr in FY25. • Q4 FY25 standalone: Net profit surged 38% YoY to ₹1,246 cr from ₹900 cr, and revenue rose 6% to ₹11,907 cr. EBITDA increased ~12.5% YoY to ₹1,791 cr, with a margin of 15.04% (vs. 14.13% last year). PBT grew 14% to ₹1,671 cr. Balance Sheet & Cash Flows FY25 net worth rose to ₹11,518 cr from ₹8,810 cr in FY24. Shareholders’ funds increased ~30%. Historical cash flow was volatile, but FY25 showed a strong turnaround with significant positive operating cash flow. Shareholding Pattern Promoters (Hinduja Group): ~51.5% FIIs: ~23.5% DIIs: ~14% Retail & others: ~10% Profitability & Efficiency Metrics EPS for FY24 rose to ~₹8.46 from ₹4.23 in FY23. EBITDA grew 32.7% YoY to ₹2,638 cr, margins improved from 3.0% to 5.4%. Strengths • Steady improvement in profitability, margins, and EPS. • Strong cash generation and shift to net cash position. • Robust promoter and institutional backing. Risks • Cyclical demand in commercial vehicles. • Capital-intensive operations. • Past volatility in operating cash flows. Conclusion Ashok Leyland delivered strong FY25 results with higher margins, solid profit growth, and a shift to net cash. While industry cycles remain a risk, its financial improvement and growth plans position it as an attractive mid-to-long-term investment in commercial vehicles.