Ashok Leyland hits 52-week high after receiving large orders

Ashok Leyland rose 5.44% to Rs 40.70 at 10:43 IST on BSE after the company said it received orders for 4,000 buses worth Rs 1500 crore from state transport undertakings.

The announcement was made during trading hours today, 9 September 2014.

Meanwhile, the BSE Sensex was down 94.56 points, or 0.35%, to 27,225.29.

On BSE, so far 24.51 lakh shares were traded in the counter, compared with an average volume of 20.12 lakh shares in the past one quarter.

The stock hit a high of Rs 40.70 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 38.20 so far during the day. The stock hit a 52-week low of Rs 13.05 on 10 September 2013.

The stock had outperformed the market over the past one month till 8 September 2014, rising 13.86% compared with 7.86% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 13.86% as against Sensex's 7.57% rise.

The large-cap company has an equity capital of Rs 284.59 crore. Face value per share is Re 1.

Ashok Leyland said it has received orders for around 4000 buses from state transport undertakings (STUs). A total of 22 STUs across the country including Calcutta State Transport Corporation (CSTC), Bangalore Metropolitan Transport Corporation (BMTC), Andhra Pradesh State Road Transport Corporation (APSRTC), Jaipur City Transport Services (JCTSL), and Pune Mahanagar Parivahan Mahamandal (PMPML) have placed large orders on the company.

Vinod K. Dasari, Managing Director, Ashok Leyland, said, "With rapid urbanization and increasing agglomeration in Indian cities, it is important to modernize public transportation systems and offer technologically advanced and empathetically designed transport solutions. JanBus, the world's first front-engine, single-step entry, full-flat floor bus, is a vehicle specifically designed for urban transport. It provides several patented features that maximize passenger safety and substantially enhanced operating economics for the STUs. JanBus has received tremendous response from STUs - it will contribute over 2000 buses to JNNURM-II. We have also received orders from the international market for the bus and soon JanBus will be running in many countries. We have always been at the forefront of providing world-class products first to our fellow Indians and remain committed to making lives simpler and safer for every Indian."

Similarly, the 8-meter 'JanBus Midi', with a uniform floor height of 650 mm is specially designed for feeder services, offering last mile connectivity from metro stations, BRT corridors to the final destinations. Metro feeder operations require quick boarding and alighting for which the bus is equipped with wide doors and a single-step entry. Both the JanBus and the JanBus Midi are products that are well suited to fit Government of India's 'Smart City Strategy'."

Ashok Leyland will offer a mix of JanBus, midi-buses and Ultra Low Entry (ULE) buses as a part of the 4000 buses ordered under JNNURM-II. The supply of these buses has started and many of them are already carrying passengers, the company said in a statement.

Ashok Leyland reported a net loss of Rs 47.95 crore in Q1 June 2014, lower than net loss of Rs 141.75 crore in Q1 June 2013. Total income rose 5.25% to Rs 2500.92 crore in Q1 June 2014 over Q1 June 2013.

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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