Ashok Leyland gains on optimistic Q4 outlook

Ashok Leyland rose 2.98% to Rs 17.30 at 14:16 IST on BSE as the company is optimistic about Q4 March 2014 after reporting dismal Q3 December 2013 results on Tuesday, 21 January 2014.

Meanwhile, the BSE Sensex was up 17.88 points, or 0.08%, to 21,269.

On BSE, so far 22.82 lakh shares were traded in the counter, compared with an average volume of 14.41 lakh shares in the past one quarter.

The stock hit a high of Rs 17.55 and a low of Rs 16.20 so far during the day. The stock hit a 52-week high of Rs 26.45 on 21 January 2013. The stock hit a 52-week low of Rs 11.82 on 29 August 2013.

The stock had outperformed the market over the past one month till 21 January 2014, rising 6.67% compared with the Sensex's 0.81% rise. The scrip had, however, underperformed the market in past one quarter, falling 0.88% as against Sensex's 1.71% rise.

The mid-cap commercial vehicles maker has an equity capital of Rs 266.07 crore. Face value per share is Re 1.

Ashok Leyland said that the company gained market share in the trucks business buoyed by the success of the ICV truck BOSS in every market where it has been launched. In line with the company's policy of ensuring fiscal prudence, the company is working to lower costs, reduce debt and divest non-core assets. There has been a significant reduction in operating costs and lowered working capital; including a VRS for about 500 executives, Ashok Leyland said in a statement.

"We look forward to the general optimism associated with Q4. Our latest offering, the CAPTAIN range of heavy trucks, brings an altogether different level of trucking experience to Indian roads and we are sure to reap its benefits. We hope orders under JNNURM will commence in Q4," said Vinod K. Dasari, Managing Director, Ashok Leyland.

The company continues to invest in network expansion with over 600 customer touch points, including retail parts stores and containerized workshops, across the country, Ashok Leyland said.

Ashok Leyland reported a net loss of Rs 167.20 crore in Q3 December 2013 compared with a net profit of Rs 74.14 crore in Q3 December 2012. Total income fell 18.67% to Rs 1968.62 crore in Q3 December 2013 over Q3 December 2012. The company announced the results after trading hours on Tuesday, 21 January 2014.

Ashok Leyland, the flagship of the Hinduja Group, is the second largest maker of commercial vehicles in India after Tata Motors.

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