Source : PTI | Hinduja Group flagship, Ashok Leyland, which reported a 33% growth in exports for Q3 FY25 at 4,151 units said the exports demand was mainly driven by international markets such as SAARC (South Asian Association for Regional Cooperation), Africa, and GCC (Gulf Cooperation Council).
“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,” said Shenu Agarwal, Managing Director & CEO of Ashok Leyland. The GCC comprises approximately 30% of the company’s exports.
The company is optimistic about the upcoming quarters and years , expecting a surge in exports from the GCC, Africa, SAARC, and other regions. The senior management also mentioned that the company may roll out customised products for ASEAN (Association of Southeast Asian Nations) markets.
The Chennai-based commercial vehicle manufacturer also 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, said K. M. Balaji, CFO, during the call.
Switch Mobility
The injection of INR 500 crore will boost the ongoing capital expenditure and expansion plans, according to Dheeraj Hinduja, Executive Chairman of Ashok Leyland.
Last year, the company had announced the injection of INR 1,200 crore into Switch Mobility, through external sources.
Switch Mobility currently has an order book for more than 1,800 electric buses, including 100 buses to be exported to the Mauritius market.
Performance in Q3 FY25
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.
