Ashok Leyland dips post September quarter results

The stock had outperformed the market by surging 79% thus far in 2015 against 3.5% fall in Sensex till yesterday.

Ashok Leyland has dipped 5% to Rs 87.50 on the BSE after the company reported a net profit Rs 286 crore for the quarter ended September 30, 2015 (Q2), against an average analyst estimates of Rs 316 crore due to lower than expected revenues.The automaker had profit of Rs 121 crore in a year ago quarter.

Revenues increased 53.5% year-on-year (YoY) to Rs 4,940 crore during the quarter, also lower than analyst estimates of Rs 5,192 crore.

“Volume growth has been robust at 51% YoY driven by a 64% growth in the medium and heavy commercial vehicles (MHCV) space. However blended realization/vehicle grew 2% YoY to Rs 14.08 lakh coming lower than our expectations of Rs 15 lakh possibly due to slightly unfavourable product mix,” the broking firm Angel Broking said in a client note.

Meanwhile, the stock had outperformed the market by surging 79% thus far in 2015 as compared to 3.5% fall in the S&P BSE Sensex till yesterday.

At 11:28 AM, the stock was down 4.4% at Rs 88 on the BSE. A combined 24.18 million shares changed hands on the counter on the BSE and NSE.