Ashok Leyland dips on disappointing May sales

The stock was down 4% at Rs 105, falling 6.2% from intra-day high on the BSE.

Ashok Leyland was trading 4% lower at Rs 105, falling 6.2% from intra-day high on the BSE, after the commerical vehicles major reported single digit growth in total sales for the month of May 2016.

“Total sales of the company rose by 6% in May 2016 to 9,875 units from 9,290 units in a year ago month,” Ashok Leyland said in a press release. The growth rate is lowest since July 2014, when the company recorded 10% year on year decline in total sales.

The company’s medium & heavy commercial vehicles (M&HCV) sales grew by 8% in May to 7,469 units from 6,888 units, a year ago. Light commercial vehicle (LCV) sales remained unchanged at 2,406 units as against 2,402 units, a year ago, it added.

On cumulative basis, during April to May 2016, the company's total sales rose by 13% to 20,057 units from 17,725 units during the same period last year.

The stock hit an intra-day high of Rs 112 on the BSE, before the announcement of May sales figures. The trading volumes on the counter nearly doubled with a combined 25.03 million shares changed hands on the BSE and NSE.

Month	Total sales	% chg
May '2016	9,875	6.3
Apr '2016	10,182	21.1
Mar '2016	16,702	31.1
Feb '2016	13,406	24.9
Jan '2016	13,884	30.8
Dec '2015	12,154	30.8
Nov '2015	8,971	16.2
Oct '2015	9,808	16.9
Sep '2015	14,778	60.6
Aug '2015	11,548	37.9
Jul '2015	11,022	40.9
Jun '2015	10,357	39.7
May '2015	9,290	40.1
Apr '2015	8,409	43.4
Mar '2015	12,744	24.4
Feb '2015	10,737	36.4
Jan '2015	10,612	36.3
Dec '2014	9,290	48.0
Nov '2014	7,723	46.7
Oct '2014	8,387	31.0
Sep '2014	9,200	27.2
Aug '2014	8,372	17.3
Jul '2014	7,821	-10.2
* % change on year-on-year
Source: SIAM
Data compiled by BS Research