Lanka Ashok Leyland reports strong results in FY25

Wednesday, 28 May 2025 00:00 - - {{hitsCtrl.values.hits}}

Revenue surges 67%; PAT up 78% to Rs. 1.5 b and EPS rises to Rs. 423
Announces first and final dividend of Rs. 20 per share

CEO Umesh Gautam

Lanka Ashok Leyland PLC, Sri Lanka’s market leader in commercial vehicles and the only assembler of heavy commercial vehicles in the country, yesterday announced its audited financial results for the year ended 31 March, marking another successful and strategically significant year for the company.

Revenue for the financial year increased by 67% over last year’s figure, driven by a robust resurgence in demand and acceptance of locally assembled new commercial vehicles amid an improving macroeconomic climate. This strong topline growth, combined with continued cost discipline, propelled profit after tax to Rs. 1.5 billion, a 78% increase over last year’s figure.

Earnings per share rose sharply to Rs. 423, up from Rs. 237 in the previous year, further underscoring the company’s sustained profitability and strong shareholder returns. The Company also announced a first and final dividend of Rs. 20 per share.

Despite the scale of operations, the company maintained a disciplined cost structure with overheads rising only 8%, reflecting operational efficiency and a continued commitment to financial prudence.

A key strategic focus for the company remains on local vehicle assembly, utilising Sri Lankan talent and expanding domestic value addition. Today, nearly 35% of the cost of every vehicle assembled is locally added, highlighting Lanka Ashok Leyland’s commitment to supporting national industrial development and import substitution.

The company proudly employs over 600 Sri Lankans and works closely with local ancillary suppliers, fostering a self-reinforcing ecosystem that supports economic development while strengthening Lanka Ashok Leyland’s own supply chain.

In a notable product milestone, the company launched LUXRA, a super-luxury air-conditioned coach targeting the growing tourism and premium inter-city travel segments. Early sales are already underway, and the response has been highly encouraging.

Lanka Ashok Leyland also increased its emphasis on exporting locally assembled trucks to right-hand drive markets, where the company has seen a favourable reception over the last 12 months, reinforcing its growing international footprint.

Commenting on the company’s performance, CEO Umesh Gautam said: “FY 2024/25 has been another successful year for Lanka Ashok Leyland, marked by solid growth, operational discipline, and strategic progress. I’m incredibly proud of our team’s performance and thank all our employees and partners for their contribution. I would also like to extend our sincere gratitude to the Government of Sri Lanka and the Industries Ministry for their continued support to the local industry and automotive sector. As we look to the year ahead, we remain committed to innovation, local value creation, and expanding our role in both domestic and export markets.”

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