Daimler India Commercial Vehicles (DICV), known for its BharatBenz trucks, reported a remarkable increase in net profit to ₹1,787 crore (around $212 million) for the fiscal year 2024, reflecting a fivefold growth attributed to robust sales, particularly in the bus segment, along with a notable tax credit. This marks the second consecutive year of profitability, reducing its accumulated losses to ₹5,807 crore from ₹7,594 crore the previous fiscal year, thanks in part to previous losses lowering the tax burden.
The profit before tax for FY24 surged to ₹347 crore, more than double the ₹124 crore recorded in FY23, driven by improved operating margins and reduced depreciation costs. Operating profit grew by 34% to ₹739 crore, resulting in an operating margin of 6.27%, which is an increase of 109 basis points year-on-year. In comparison, Ashok Leyland achieved an operating profit margin of 12% for FY24, with sales of about 194,683 units generating revenue of ₹38,367 crore, significantly less than that of DICV.
The bus segment was a key driver of revenue growth, increasing by 54% to ₹649 crore in FY24 from ₹420 crore the previous year. The truck segment also showed an 11.25% revenue increase, reaching ₹8,077 crore. Overall, DICV’s domestic revenue climbed 32% to ₹8,273 crore, offsetting a 22% drop in international revenue, which fell to ₹324 crore, highlighting the resilience of the Indian vehicle market.
The company reported total revenue of ₹11,792 crore for FY24, up from ₹10,664 crore the prior year, and expressed satisfaction with achieving a net profit of ₹1,787 crore, compared to ₹303 crore in the previous fiscal year. For the January to March 2024 quarter, DICV noted a 39% rise in domestic sales and a 13% increase in cumulative annual sales for 2023, with bus sales seeing a remarkable doubling.
Satyakam Arya, Managing Director and CEO of DICV, declared that 2023 was the company’s best year, with truck sales growing by 35% and bus sales more than doubling, significantly outpacing the market. In 2024, DICV launched 14 new products across three market segments, anticipating that the light-to-heavy-duty vehicle market will outperform expectations despite geopolitical challenges and the national election.
Daimler emphasized the strong demand for its tipper and tractor-trailer models, which grew by 53% and 79%, respectively, compared to 2022. Daimler has also transitioned its entire BharatBenz truck and bus lineup to meet OBD-II compliance and introduced a new heavy-duty truck range with innovative features to enhance customer value. Arya noted that strategic initiatives in 2023 positioned the company well for continued growth, with a strong product portfolio aimed at optimizing total cost of ownership, uptime, and reliability.
On the sustainability front, DICV reported that around 85% of its manufacturing operations are powered by renewable energy, and nearly 90% of its plant functions utilize upcycled water, contributing to a reduction of over 27,000 tonnes of carbon emissions.
