Ashok Leyland seems in top gear with market share, margin gains
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Ashok Leyland ended FY17 on a strong note, delivering better than estimated financials for the quarter ended March. The strong results saw the stock gain 4.6 per cent in trade on Thursday. Boosted by higher volumes and realisations, net sales at Rs 6,618 crorAshok Leyland seems in top gear with market share, margin gains
Ashok Leyland ended FY17 on a strong note, delivering better than estimated financials for the quarter ended March. The strong results saw the stock gain 4.6 per cent in trade on Thursday. Boosted by higher volumes and realisations, net sales at Rs 6,618 crore were up 11 per cent over the year-ago quarter and better than the consensus estimate of Rs 6,515 crore. A major part of the volume gain came from the medium and heavy commercial vehicle (M&HCV) segment, which grew by nearly 10 per cent. Light CVs, lagging, were up two per cent. The higher M&HCV volumes were largely due to the pre-buying of BS-III emisison standard vehicles in March, with the company selling about 15,000 units, highest for a month in a little over two years.The company also outdid analyst expectations on the operating front, reporting a profit of Rs 727 crore. Operating profit margin at 11 per cent for the quarter were better than the 10.3 per cent pegged by analysts. Gopal Mahadevan, chief financial ... Read more