19 May 2025
Strengthens Commitment to Shareholder Value Amid Robust Performance
Ashok Leyland Ltd., the flagship company of the Hinduja Group and a major player in the global commercial vehicle industry, has declared a second interim dividend of ₹4.25 per equity share for the financial year ending March 31, 2025. This announcement, made following the Board of Directors meeting on Friday, highlights the company’s consistent financial strength and dedication to shareholder returns.
Total Dividend for FY2025 Reaches ₹6.25 per Share
With this announcement, the total dividend payout for FY2025 stands at ₹6.25 per share — representing a 625% return on the face value of ₹1 per share. The first interim dividend of ₹2.00 per share was declared earlier, with a record date of November 19, 2024.
Record Date and Payment Timeline
Ashok Leyland has set May 22, 2025, as the record date to determine eligible shareholders for the second interim dividend. The dividend will be credited or dispatched on or before June 14, 2025, according to the company’s official filing.
Key Highlights of the Dividend Announcement
- Second interim dividend: ₹4.25 per equity share
- Total FY25 dividend: ₹6.25 per share (625% on face value of ₹1)
- Total disbursement: ₹1,248 crore
- Retail investor share: ₹118 crore (up to 9.56% stake)
- Record date: May 22, 2025
- Payment date: On or before June 14, 2025
Sales Performance in April 2025
Despite the strong dividend payout, Ashok Leyland reported a 7% YoY decline in domestic vehicle sales for April 2025. The company sold 12,509 units compared to 13,446 units in April 2024.
- M&HCV trucks: Down 10% to 5,915 units
- M&HCV buses: Down 28% to 1,491 units
- LCVs: Up 6% to 5,103 units
In total (domestic + exports), sales dropped by 6% YoY to 13,421 units in April 2025.
Ashok Leyland Share Price Movement
On May 16, 2025, Ashok Leyland’s stock (NSE: ASHOKLEY) closed at ₹237.26, registering a 0.88% decline for the day. The stock has, however, gained 14.85% in the past 12 months and 7.63% year-to-date.
According to Bloomberg data:
- 36 out of 44 analysts recommend a ‘Buy’
- 4 analysts suggest ‘Hold’
- 4 analysts suggest ‘Sell’
- 12-month average target price: ₹253.03 (6.6% potential upside)
Statements from the Company
“This move reinforces our continued commitment to delivering value to our shareholders,” Ashok Leyland said in its official release, attributing the dividend to its robust financial results and sustained business growth.
The company also included a forward-looking disclaimer, noting that actual outcomes may vary due to market and operational uncertainties.
Company Overview
Founded in 1948 and headquartered in Chennai, Ashok Leyland is a key player in India’s commercial vehicle space and a global top-10 manufacturer of trucks and buses. The company offers a wide range of products — from trucks and buses to light commercial vehicles and defense vehicles — and operates multiple manufacturing facilities across India.
Its strong export presence and focus on sustainable mobility solutions underline its commitment to future-ready transport infrastructure.
Outlook
With steady investor confidence, innovation in sustainable mobility, and strong product offerings, Ashok Leyland is expected to maintain its growth momentum in the commercial vehicle space. Despite short-term dips in monthly sales, its long-term performance continues to reflect financial resilience and operational strength.
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