Ashok Leyland Q3 Results: Profit Rises, Beats Estimates

Ashok Leyland's Q3 revenue up 63% to Rs 9,029.7 crore against estimates of Rs 8,701 crore.

Ashok Leyland Q3 Results: Profit Rises, Beats Estimates

Ashok Leyland Ltd. reported a net profit in the third quarter on higher sales, improved product mix and price hikes.

The commercial vehicle maker's net profit grew manifold to Rs 361.3 crore in the quarter ended December, according to its exchange filing. That compares to a Rs 314.7-crore consensus estimates of analysts tracked by Bloomberg.

Ashok Leyland Q3 FY23 Highlights (YoY):

  • Revenue up 63% to Rs 9,029.7 crore against estimates of Rs 8,701 crore. 

  • Operating profit rose 256% to Rs 797.3 crore against a forecast of Rs 663.7 crore.

  • Operating margin stood at 8.8%, as against 4.0% last year and estimates of 7.6%.

The company's total sales rose 5% sequentially and 40% year-on-year to 47,562 units during the quarter, as the government’s focus on infrastructure development and a revival in replacement demand for commercial vehicles continued to improve sales.

The company cornered a market share of 33% in the medium and heavy commercial vehicle category during the quarter, as opposed to 26% last year.

"The current quarter saw the confluence of continued uptick in our volumes, better realisations, and lower input costs thus helping us achieve higher profitability as well as market share," Shenu Agarwal, managing director and chief executive officer at Ashok Leyland, said in a statement.

The company continues to pursue better realisations even as it expands market share, Dheeraj Hinduja, executive chairman at the company, said in a release. This, along with continued focus on optimising input costs, has helped achieve better financial performance, he said.

Shares of Ashok Leyland Ltd. ended 1.1% down before the results were announced, compared with a 0.3% fall in the Nifty 50.

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