The profit is likely to be in the range of Rs 330-583 crore for the quarter under review.
Analysts expect good performance from Ashok Leyland for the September quarter as better volume and realisations could boost the profits. Further, a stronger operational performance will help, multiple brokerages said in their reports.
The profit is likely to be in the range of Rs 330-583 crore for the quarter under review.
Here is a gist of what multiple brokerages are expecting from the results.
Brokerage: Axis Securities | PAT: Rs 540 crore
Axis Securities expects revenue growth driven by strong volume growth coupled with rising share of higher tonnage truck. Further, it sees margins improving YoY predominantly due to positive operating leverage.
Brokerage: Emkay | PAT: Rs 512.1 crore
Emkay expects standalone revenue to grow strongly by 30 percent YoY (+26 percent QoQ) to Rs 7,850 crore led by growth of 27 percent YoY (+23 percent QoQ) in volume and 2 percent YoY (+2 QoQ) in realization.
“Realization is expected to increase sequentially due to benign mix (higher share of above 25T vehicles) and price hikes. EBITDA margin should expand by 60 bps QoQ (+90 bps YoY) to 11 percent led by higher scale, price hikes and benign mix, despite commodity inflation,” analysts at the frim wrote in their report.
Brokerage: Motilal Oswal | PAT: Rs 330 crore
Motilal Oswal expects realization to increase 0.8 percent YoY (and 0.5 percent QoQ) led by price hikes and mix impact. Net revenue is likely to grow 49.1 percent YoY (decline 28 percent QoQ) to Rs 6320 crore led by volume and realization growth.
Operating margin is likely to expand 210 bps YoY (decline 250bp QoQ) to 9.3 percent, led by operating leverage. Meanwhile, operating profit should increase 92 percent to Rs 590 crore.
Key issues to watch
Update on CV demand and discount trends
Update on LCVs, exports and defense business
Raw materials cost guidance and pricing actions
Capex and investment guidance for FY19.
Brokerage: ICICI Securities | PAT: Rs 537 crore
Ashok Leyland is expected to report a robust performance in Q2FY19 primarily driven by healthy 27 percent volume growth in the CV space. Total CV sales volume in Q2FY19 were at 51,958 units comprising LCV sales volume of 13,572 units, up 42 percent YoY and MHCV sales volume of 38,386 units, up 22 percent YoY.
Consequent net sales in Q2FY19 are expected at Rs 7,746 crore, up 28 percent YoY.
It may report operating profit of Rs 882 crore, while EBITDA margin is likely at 11.4 percent
Brokerage: Kotak Institutional Equities | PAT: Rs 582.9 crore
Kotak Institutional Equities expects revenues to increase 29 percent yoy in 2QFY19 led by (1) 27 percent yoy growth in volumes and (2) price increases taken by the company.
It expects EBITDA to grow 51 percent yoy as EBITDA margin could improve by 180 bps yoy due to 120 bps yoy improvement in gross margin and 60 bps yoy due to operating leverage benefits.
Brokerage: Prabhudas Lilladher | PAT: Rs 509.2 crore
Prabhudas Lilladher is anticipating realisations to improve by 1.75 percent YoY and expects revenues to grow by 29 percent YoY and margins to expand by 60 bps YoY (up 30 bps QoQ) despite the commodity cost pressure on the back of the robust volume growth.
