Ashok Leyland declines after poor Q1 earnings

Ashok Leyland lost 3.78% to Rs 101.95 at 13:59 IST on BSE after net profit fell 61.74% to Rs 111.23 crore on 0.37% decline in total income to Rs 4552.79 crore in Q1 June 2017 over Q1 June 2016.

The result was announced during market hours today, 21 July 2017.

Meanwhile, the S&P BSE Sensex was up 5.95 points or 0.02% at 31,910.35.

On the BSE, 22.49 lakh shares were traded on the counter so far as against the average daily volumes of 16.82 lakh shares in the past one quarter. The stock had hit a high of Rs 106.15 and a low of Rs 100 so far during the day. The stock had hit a 52-week high of Rs 109.50 on 18 July 2017 and a 52-week low of Rs 73.60 on 22 November 2016.

The stock had outperformed the market over the past one month till 20 July 2017, advancing 13.8% compared with the Sensex's 1.94% rise. The stock had also outperformed the market over the past one quarter, gaining 29.37% as against the Sensex's 8.44% rise. The scrip had, however, underperformed the market over the past one year, advancing 13.38% as against the Sensex's 14.29% rise.

The large-cap company has equity capital of Rs 292.65 crore. Face value per share is Rs 1.

Ashok Leyland's profitability in Q1 June 2017 was lower, primarily because of a richer mix and exchange gain on swap contracts in Q1 June 2016. The mix is expected to significantly improve in the coming quarters, the company said. The next 3 quarters look promising as the demand is expected to pick up on the back of Government spending on infrastructure as well as positive impact of GST, it added.

Ashok Leyland is one of the leading manufacturers of medium and heavy commercial vehicles in India.

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