Daimler India Commercial Vehicles (DICV) Achieves Impressive Profit Growth in FY24

Key Highlights:

• Daimler India Commercial Vehicles (DICV) reported a net profit of ₹1,787 crore in FY24, its second profitable year.
• Profit before tax jumped to ₹347 crore, driven by increased margins and lower depreciation.
• DICV's bus revenue grew 54%, and truck revenue increased 11.25%, boosting domestic sales by 32%.
• In 2023, DICV launched 14 new products and saw strong tippers, tractor-trailers, and bus sales growth.
• DICV achieved 85% renewable energy use in manufacturing, cutting emissions by over 27,000 tonnes.

Daimler India Commercial Vehicles (DICV), the manufacturer of BharatBenz trucks, reported a significant increase in profit, achieving ₹1,787 crore ($212 million) in net profit for FY24. This growth was fueled by a rise in bus sales and tax credits, marking the second consecutive year of profitability. DICV reduced its accumulated losses to ₹5,807 crore from ₹7,594 crore in the previous year.

Strong Financial Performance and Operating Profit

DICV’s profit before tax jumped to ₹347 crore in FY24, more than doubling from ₹124 crore in FY23. Operating profit increased by 34% to ₹739 crore, with an operating margin expansion to 6.27%. While DICV’s margin growth was notable, Ashok Leyland recorded a higher operating profit margin of 12% in FY24.

Significant Growth in Bus and Truck Segments

The bus segment saw remarkable growth with a 54% revenue increase to ₹649 crore, while the truck segment revenue grew by 11.25% to ₹8,077 crore. DICV’s domestic business grew 32% to ₹8,273 crore, offsetting a 22% decline in overseas revenue.

Record-Breaking Sales in 2023

In 2023, DICV experienced record-breaking sales, with a 39% increase in domestic sales. DICV launched 14 new products in 2024 and introduced an innovative heavy-duty truck range with unique features. CEO Satyakam Arya highlighted that the company achieved its best year ever, selling 23,400 trucks and doubling bus sales. 

New Product Launches and Innovations

DICV’s advancements included the introduction of a 12-speed Automated Manual Transmission (AMT) for BharatBenz trucks and a redesigned construction and mining truck series. The company’s strategic focus on cost-effective operations and product innovation aims to drive further growth in 2024.

Focus on Sustainability

On the sustainability front, DICV reported that 85% of its operations are powered by renewable energy, and nearly 90% of its plant functions use upcycled water, helping reduce over 27,000 tonnes of carbon emissions.

Also Read: BharatBenz Awarded "Well-Known Trademark" Status

CMV360 Says

DICV's impressive profit growth and strategic advancements demonstrate its strong position in the Indian commercial vehicle market. With innovations in product offerings and a focus on sustainability, DICV is well-poised to continue its growth trajectory, benefiting from both domestic demand and a robust product portfolio.