Ashok Leyland: Q3 result Seen 22% increase yoy
For the December quarter, the AL’s volumes are expected to see a 22 per cent increase year-on-year driven by enhanced demand for trucks and MCVs (medium commercial vehicles), while volumes in Q3 are expected to top 27 % on higher economic activity and improvement in business sentiment.
As per one of the Stock Analysts at Motilal Oswal Securities, there is another positive in the quarter has been some reduction in discounts which will help realisations of Ashok Leyland improve 4.7% yoy. A Tremendous incerease in volumes and an increase in realisations will help " Ashok Leyland" revenues for the quarter move up 28% to Rs4,295 Cr. On the other hand fall in commodity price is expected to improve its profitability to a greater extend, raw material to sales for the Q3 are expected to fall 400 bps to 70.5% year-on-year which will help improving its operating profit margins by around 300 bps to 10.6%. Strong revenue and margin growth will assist Ashok Leyland’s operating profit to grow by 50% year-on-year in Q3.
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