Ashok Leyland Q4 result preview: PAT likely to decline more than 25%, revenue seen growing 34.5%

Ashok Leyland Q4 result preview: Ashok Leyland is likely to report a 34.5 per cent growth in standalone revenue to Rs 11,760 crore year-on-year (YoY) for Q4FY2023, according to Zee Business Research.

The automotive company’s standalone profit after tax (PAT) is expected to come in at Rs 670 crore, down by 25.6 per cent as compared to Rs 901 crore a year-ago period. Adjusted PAT is pegged Rs 670 crore against Rs 420 crore logged in the year-ago period. The company is likely to report adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) at Rs  1,183 crore against Rs 776 crore registered in the previous year. On a YoY basis, EBITDA may increase by 52.5 per cent.

The company's margin — a key measure of profitability for a business — is likely to increase by 120 basis points to 10.1 per cent from 8.9 per cent YoY. Margins will benefit from the fall in raw material prices according to the report. The company’s EBITDA and margin could rise on the back of a fall in input costs and better operating performance.

According to Zee Business research, the company's volume is expected to increase by 22.5 per cent to 59,697 units, and realisation– a key concept in revenue recognition– is estimated to increase by 10.7 per cent to Rs 19.87 lakh. Realisation is expected to increase due to reduced price hikes and discounts.

On Monday, May 22, 2023, shares of Ashok Leyland settled 0.78 per cent lower at Rs 153.5 apiece on the NSE, and on BSE, the stock traded at Rs 153.15. Ashok Leyland shares have gained over 5 per cent in value in the past six months, a period in which headline indices Nifty50 rose 0.26 per cent.

About Ashok Leyland

Ashok Leyland, the flagship company of the Hinduja group, is the second-largest manufacturer of commercial vehicles in India. Headquartered in Chennai, the company has nine manufacturing plants – seven in India. According to the official website, Ashok Leyland has a well-diversified portfolio across the automobile industry.

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