The company reported a gain of 13.5 percent in the net profit at Rs 334.2 crore against Rs 294.4 crore year on year.
Ashok Leyland fell over 2 percent intraday on Thursday as investors reacted to the company’s September quarter earnings, which missed estimates.
September quarter performance for the firm rose from the previous year, but came in lower analysts’ estimates.
The company reported a gain of 13.5 percent in the net profit at Rs 334.2 crore against Rs 294.4 crore year on year. Revenues for the firm came in 30.8 percent higher at Rs 6,047 crore against Rs 4,622.4 crore reported in the same quarter last year.
On the operational front, the earnings before interest, taxes, depreciation and amortisation (EBITDA) was higher by 14 percent at Rs 611.8 crore against Rs 536.5 crore year on year.
Meanwhile, the operating margin was reported at 10.1 percent against 11.6 percent reported in the same quarter last year.
Global research firm Nomura has maintained its buy call on the stock with a target of Rs 140. It observed that the earnings were below estimates and it is awaiting clarity on the share of defence, spare parts revenues during the quarter.
But, Nomura is positive on MHCV industry growth and is factoring in 15/10 percent growth in FY19/20, along with believing higher tonnage share should be a key positive.
At 12:18 hrs, Ashok Leyland was quoting at Rs 115.20, down Rs 4.05, or 3.40 percent, on the BSE. It touched an intraday high of Rs 121.40 and an intraday low of Rs 114.10.
