This is the company’s highest quarterly growth in over two years. During the period, the company’s revenue increased 47% to Rs 6,250 crore, which was below estimates. The company’s Ebitda grew 111% to Rs 648 crore while margins expanded to 10.4% from 7.2% in the same period last year.During the quarter, ALL sold 42,127 units, which was an increase of 48% compared to the same period last year.

Vinod K Dasari, managing director, ALL, said: “Despite pressure on realisation and raw material price increases, I am happy that we continue to post growth with profitability. We have grown significantly in Intermediate Commercial Vehicles (ICVs). The LCV and bus business have also posted good growth. Exports have also grown 24%. We will continue to pursue our strategy of derisking the company from cyclicality even as we pursue superior returns.” Dasari acknowledged the impact of the base effect and also expressed concerns over pressure on realisations and rise in raw material prices.

Gopal Mahadevan, CFO, Ashok Leyland, said: “We have seen a double-digit Ebitda margins for 13 of the 14 sequential quarters. Our net cash in the balance sheet is Rs 1,165 crore. Focus on operating costs, product mix and material cost optimisation will continue, even as we pursue growth.”