Mumbai, Nov 9 (PTI) Commercial vehicle maker Ashok Leyland on Thursday said its Profit After Tax (PAT) nearly tripled to Rs 561 crore in the September quarter.

In the year-ago period, the company had reported a PAT of Rs 199.31 crore.

Also Read | Pippa Actress Mrunal Thakur Opens Up on Delay of Ishaan Khattar-Starrer: 'A Film Like My Baby Deserves its Time to Shine'.

Revenue during the second quarter of the current fiscal rose to Rs 9,638 crore from Rs 8,266 crore in the second quarter of FY23, the company said in a statement.

The company also said its board has approved an investment of Rs 1,200 crore as equity in its EV arm Switch mobility through its holding company Optare PLC UK.

Also Read | Uttarakhand Day 2023 Date: Know the History & Significance of Uttarakhand Sthapna Diwas That Marks the State Foundation Day.

The company said the growth momentum seen in the industry in the first half of the fiscal is expected to continue with the Medium and Heavy Commercial Vehicles (MHCV) segment likely to log 8-10 per cent growth in the fiscal while Light commercial Vehicle (LCV) segment estimated to grow at 4-5 per cent.

It said Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) for the quarter was Rs 1,080 crore as against Rs 537 crore in the year-ago period.

The company's net debt stood at Rs 1,139 crore at the end of the second quarter, it said.

The domestic MHCV sales stood at 29,947 units, up 18 per cent from the second quarter of the previous fiscal, which is in line with industry growth.

LCV volume was at 16,998 units compared to 17,040 LCVs sold in the same period last year, Ashok Leyland said.

Export volumes for the quarter -- MHCV & LCV -- were 4 per cent higher at 2,901 units from the year-ago period despite multiple socio-political challenges across the globe.

The company said it has significantly increased its bus market share, making it the manufacturer in the country.

"We have grown and grown profitability. The second half of the year appears to have the twin tailwinds of demand growth and softer commodity prices which should improve the profitability of the industry," Ashok Leyland MD & CEO Shenu Agarwal said.

This is the third consecutive quarter of double-digit EBITDA, he said, adding that there is tremendous focus on margin enhancement, network expansion, operational efficiency, cost optimisation and deployment of digital as an enabler for growth and productivity.

There is an enhanced thrust to grow all non-MHCV businesses as well and "we expect to see the benefits of all of this in the coming quarters", he added.

"In H2 FY24 (October-March), we also believe that this growth momentum would continue, roughly between 8-10 per cent. And all the macroeconomic factors are actually favouring the industry in a big manner right now, whether it is the spent on the infrastructure projects, or whether it is the movement happening in the cement, the coal and the other sectors, including e-commerce, which is showing up some good signs and even rural markets, which are showing some positive signs now,” Agarwal said.

"So, we still maintain our estimate of 8-10 per cent for the whole year as far as MHCV is concerned," he said.

"On the LCV side, the industry has not risen to the levels that we were hoping for because in the beginning of the year, we said 4-5 per cent. But now the industry is only 3 per cent up.

"But on that side also, we think that there are some green shoots that we are seeing, especially on the rural side, the e-commerce side… so industry should be better on the LCD side as well," he added.

So there is a good chance that overall, by end of the year, the industry (LCV segment) may grow 4-5 per cent, which was our original estimate as well, he said.

As far as Ashok Leyland is concerned, Agarwal said a lot of efforts the company has taken in the last couple of years on the product and network side, which is giving good results.

"And in H1, we have continuously been able to increase our market share despite a hefty 5 per cent growth in market share last year," Agarwal said.

He said the company had a 31.6 per cent market share in the first half and there is ample room for the company to capture a larger chunk.

"So, on both the MHCV and the LCV side, we are quite hopeful, optimistic not just for the industry but also about improving our own market share," he said.

The company said its all other businesses posted good growth in the current quarter and added that it expanded its MHCV range by launching new products in tipper, tractor, and MAV categories.

The focus on expansion of the distribution network continued with further addition of 47 touch points in the quarter, especially in the northern and eastern parts of the country, it said.

"We continue to see strong demand in all segments of trucks and passenger vehicles. The industry continues to post strong growth on the back of strong macroeconomic factors and we are confident that FY24 will see further growth in the second half as well," said Hinduja.

While International business globally is challenged owing to the conflicts across the globe, "we are intensifying our expansion strategy in our focus markets of the Middle East, Africa and Asia," he said.

The company continues to build its capabilities in alternative energy and shall be soon coming up with some exciting products and solutions, Hinduja added.

To a question on EV transition and EV penetration in buses versus LCVs, Hinduja said, "Transition is very much country-wise. If you look at it from the global level, I do feel the transition is slower than what one had expected... but India has been a very positive surprise at the pace in which EVs have picked up."

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)