Ashok Leyland Q3 Results Preview: Profit likely to rise 45% to Rs 525 crore driven by higher realisations
Chennai-headquartered Ashok Leyland, which produces a range of commercial vehicles such as buses and trucks, is estimated to register a 45 per cent year-on-year increase in standalone net profit to Rs 525 crore for the fiscal third quarter, according to Zee Business analysts.
Auto maker Ashok Leyland is all set to report its financial results for the October-December period (Q3 FY24) on Monday, February 5. Analysts expect the company to stage a strong financial performance backed by growing realisations and easing input costs.
According to Zee Business analysts, the Chennai-headquartered auto maker—which produces a range of commercial vehicles such as buses and trucks—is estimated to register a standalone net profit of Rs 525 crore for the fiscal third quarter, which translates into a year-on-year increase of 45 per cent. The analysts peg growth in Ashok Leyland’s quarterly revenue at 1.4 per cent to Rs 9,160 crore.
The CV manufacturer is expected to clock 25 per cent year-on-year growth in earnings before interest, taxes, depreciation and amortisation (EBITDA) for the three-month period to Rs 1,000 crore, and a rise of 210 basis points (bps) in margin to 10.9 per cent, according to the research.
Zee Business analysts estimate Ashok Leyland’s realizations to improve 2.5 per cent to Rs 18.99 lakh, despite a 0.7 per cent decrease in volumes to 47,241 units.
Investors are set to track the company’s demand outlook for the next financial year.
How Ashok Leyland fared in the July-September quarter (Q2 FY24)
In November last year, the auto maker reported a year-on-year jump of 2.8 times in standalone net profit of Rs 561 crore for the quarter ended September 30.
Its revenue for the July-September period increased to Rs 9,638 crore from Rs 8,266 crore a year ago.
Ashok Leyland shares: Past performance
As of February 2, Ashok Leyland shares 13 per cent in the past year, underperforming a 22 per cent rally in the headline Nifty50 index.
The stock finished the December quarter 2.5 per cent higher while the Nifty50 rose 10.7 per cent.
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