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Shares of Ashok Leyland fell nearly 14% to close at Rs 110.60 on Wednesday while Macquarie Research House maintained an underperformance on the stock with a target price of Rs 113 after the month of June. Macquarie's quarter operating profit was lower than estimated, while volume growth resulted in improved margin.
The market share of medium and heavy commercial vehicles is at its lowest level in three years. Morgan Stanley remained overweight on Ashok Leyland with a target of Rs 178 per share
According to the firm, the first quarter is a pace on a better margin, which is driven by lower raw material costs .
The net profit of the company during the quarter more than tripled to Rs 370 crore compared to Rs 111.2 crore in the same period last year, despite an operating income. increased by 46.8% yoy to Rs 6,250 crore with achievements at Rs 14.83 lakh per unit against Rs 14.88 lakh per unit a year ago. 19659002] Operationally, EBITDA (earnings before interest, taxes, depreciation and amortization) more than doubled to Rs 647.5 crore in the first quarter of 1999 from Rs 306.1 million in the same period last year. 39, last year. Gopal Mahadevan, chief financial officer of Ashok Leyland, told CNBC-TV18: "The company will have to make more price increases to pbad on the higher material costs. . Currently, the company has 1,200 crores of cash on its balance sheet.
He is not too worried about the new axle load standards and expects industry growth of 8 to 10% by the end of the year. exercise. He estimates that the cost of production will increase by 2 to 3% to comply with the new notifications.
Posted by Rakesh Patil
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