What is the story about?
Shares of Medium and Heavy Commercial Vehicles manufacturer Ashok Leyland Ltd. are witnessing volatile price movement ahead of their June quarter results on Thursday, August 14.
A CNBC-TV18 poll has
estimated the company's standalone profit to increase 13% to ₹593 crore in the June quarter from ₹526 crore in the previous year.
The Street has estimated Ashok Leyland's revenue to rise 3% to ₹8,822 crore from ₹8,599 crore in the first quarter last fiscal. The topline growth will be aided with the help of volumes and realisations.
Ashok Leyland's earnings before interest, taxes, depreciation and amortisation (EBITDA) is likely to rise 7% to ₹974 crore from ₹911 crore in the previous year, as per the CNBC-TV18 poll.
Its margins are also expected to expand to 11% from 10.6% in the year-ago period. Margins are expected to drop 400 basis points sequentially and rise 40 basis points from the previous year on cost control measures as well as favourable net pricing.
Ashok Leyland's total volumes increased by 1% from last year, but were down 25% when compared to the March quarter. Volumes in the M&HCV, as well as the Light Commercial Vehicles (LCV) segment have increased 1% each from last year, but are down 30% and 16% sequentially.
It expects average selling price to increase 2% from last year and decline 1% from the previous quarter. The rich segmental mix is partly offset by commodity headwinds.
M&HCV demand outlook, change in freight rates, discounts in CV industry and the impact of Indian Railways dedicated freight corridor are some of the key things to watch out for from Ashok Leyland in its management commentary.
Shares of Ashok Leyland were trading 0.33% lower at ₹119.36 apiece around 11 am on Thursday. The stock has
gained 7% this year, so far.
Also Read: Muthoot Finance shares jump 10% after upgrades, price target hikes after strong Q1
A CNBC-TV18 poll has
The Street has estimated Ashok Leyland's revenue to rise 3% to ₹8,822 crore from ₹8,599 crore in the first quarter last fiscal. The topline growth will be aided with the help of volumes and realisations.
Ashok Leyland's earnings before interest, taxes, depreciation and amortisation (EBITDA) is likely to rise 7% to ₹974 crore from ₹911 crore in the previous year, as per the CNBC-TV18 poll.
Its margins are also expected to expand to 11% from 10.6% in the year-ago period. Margins are expected to drop 400 basis points sequentially and rise 40 basis points from the previous year on cost control measures as well as favourable net pricing.
Ashok Leyland's total volumes increased by 1% from last year, but were down 25% when compared to the March quarter. Volumes in the M&HCV, as well as the Light Commercial Vehicles (LCV) segment have increased 1% each from last year, but are down 30% and 16% sequentially.
It expects average selling price to increase 2% from last year and decline 1% from the previous quarter. The rich segmental mix is partly offset by commodity headwinds.
M&HCV demand outlook, change in freight rates, discounts in CV industry and the impact of Indian Railways dedicated freight corridor are some of the key things to watch out for from Ashok Leyland in its management commentary.
Shares of Ashok Leyland were trading 0.33% lower at ₹119.36 apiece around 11 am on Thursday. The stock has
Also Read: Muthoot Finance shares jump 10% after upgrades, price target hikes after strong Q1
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