- 01 Apr 2025
- ICICIdirect Research
ASHOK LEYLAND HAS ANNOUNCED THAT ITS DEFENCE BUSINESS HAS SECURED MULTIPLE ORDERS VALUED AT OVER ₹700 CRORE
ASHOKLEY - 226 Change: -1.86 (-0.82 %)News: In a press release, Ashok Leyland has announced that its Defence business has secured multiple orders valued at over ₹700 crore, reinforcing its position as a leader in advanced mobility solutions for the Indian Armed Forces. The contracts, awarded under the Close-in Weapon Systems (CIWS) program, include a diverse range of specialized vehicles such as the Stallion 4x4, Stallion 6x6, Short Chassis Bus, and Mobility System Travelling Platform, designed to meet troop transportation and logistics needs while ensuring reliability and off-road capability across challenging terrains. Deliveries are set to commence in the next financial year.
View: In Q3FY25, Defence revenue has been about ₹ 100 crores as against ₹ 150 crores in Q2FY25, which was affected because of deferment of some orders. The company has guided for a strong defence order pipeline in the coming 3 to 4 quarters and this order win is positive on that side. Other than that, Hinduja Automotive Limited, the promoter of Ashok Leyland, has pledged additional 245 million shares, representing 8.3% of Ashok Leyland's issued and paid-up share capital. Hinduja Automotive holds 35.01% of Ashok Leyland's equity shares, and with this additional pledge, the total pledge of this entity now stands at 18.5% of total paid up capital.
Impact: Neutral