Commercial vehicle maker Ashok Leyland Ltd on Friday (February 23) said it has invested in TVS Trucks and Buses Private Ltd (TVS Trucks) by purchasing equity shares worth ₹24.95 crore.
"...we wish to inform you that the company has invested a sum of Rs 24.95 crore in TVS Trucks and Buses Private Limited (TVS Trucks) by way of equity shares," according to a stock exchange filing.
"Consequent to the allotment by the Board of Directors of TVS Trucks today, the company’s shareholding in TVS Trucks is 49.9%, by virtue of which, TVS Trucks has become an associate company," the company said.
TVS Trucks, incorporated on June 13, 2023, is in the automotive dealership business and has a presence in India. TVS Trucks is a joint venture between Ashok Leyland and TVS Mobility Private Ltd, with TVS Mobility holding 50.1% and the company holding the balance shareholding of 49.9%.
Ashok Leyland's net profit jumped 60.5% to ₹580 crore in Q3 of FY24 on a year-on-year (YoY) basis, beating Street estimates, riding on strong demand for its products both in the MHCV and LCV segments. It reported a net profit of ₹357 crore in Q3 of FY23. A CNBC-TV18 poll estimated net profit at ₹541 crore.
The company recorded revenue of ₹9,273 crore in the third quarter of the current financial year, compared to ₹9,030 crore in Q3FY23, registering a growth of 2.7%, but missed the CNBC-TV18 poll estimate of ₹9,392.
Ashok Leyland reported EBITDA of ₹1,114 crore (12%) in Q3 of FY24 compared to ₹797 crore (8.8%) in Q3 of FY23, registering double-digit percentage EBITDA in all three quarters of the fiscal year, the company said in its exchange filing.
Shares of Ashok Leyland Ltd ended at ₹174, up by ₹0.95, or 0.55% on the BSE.
(Edited by : Shoma Bhattacharjee)
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