Ashok Leyland spurts after total sales climbs 51% YoY in August

Ashok Leyland advanced 3.86% to Rs 159.95 after the auto major's total commercial vehicle (CV) sales jumped 51% to 14,121 units in August 2022 from 9,360 units sold in August 2021.

Sequentially, the company's total CV sales rose 3.64% in August 2022 from 13,625 units sold in July 2022.

While the total sales of medium & heavy commercial vehicles (M&HCV) soared 81% to 8,379 units, sales of light commercial vehicles (LCVs) surged 21% to 5,742 units in August 2022 over August 2021.

In the domestic market, the company sold 13,301 units of total vehicles in August 2022, up 58% compared with 8,400 units sold in the same period last year.

Meanwhile, the media reports suggested that the company bagged orders from major fleets for 1,400 school buses in UAE- the company's reportedly largest ever supply of school buses in UAE.

As per reports, the 55-seater Falcon bus and 32-seater Oyster bus - will be supplied from Ashok Leyland's manufacturing facility in Ras Al Khaimah, UAE, which is reportedly the only certified local bus making facility in the entire GCC.

According to media reports, the Ras Al Khaimah plant is a joint venture between Ashok Leyland and the Ras Al Khaimah Investment Authority (RAKIA), UAE, and has an installed capacity of 4,000 buses a year. The total fleet deal for the GCC made buses has been bagged by Ashok Leyland's UAE distribution partners, Swaidan Trading - Al Naboodah Group, the reports added.

Ashok Leyland, flagship of the Hinduja group, is among the largest manufacturer of commercial vehicles in India and also among the biggest manufacturers of buses and trucks globally.

The company reported a standalone net profit of Rs 68 crore in Q1 FY23 as against a net loss of Rs 282 crore in Q1 FY22. Revenue in the first quarter jumped to Rs 7,223 crore from Rs 2,951 crore recorded in the same period last year.

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