Home / Industry / Auto / Faster recovery in CV segment remains key for Ashok Leyland stock

Faster recovery in CV segment remains key for Ashok Leyland stock

Despite increase in freight rates, operator profitability yet to reach normal levels

Premium

The management indicated that cost savings, which stood at Rs 550 crore in 2019-20, would continue in the current financial year

Ram Prasad Sahu Mumbai

2 min read Last Updated : Nov 15 2020 | 11:15 PM IST

The Ashok Leyland stock has gained 25 per cent over the past month on expectations of a gradual recovery in the commercial vehicle segment. The gains in the near term are likely to sustain, given better-than-expected July-September quarter results, higher margins, and falling debt levels.

The near-term trigger is the operating performance in the second quarter. Even as revenues declined 28 per cent, led by a 33 per cent fall in volumes, operating profit margins at 2.8 per cent were much higher than the 0.5 per cent that the Street had anticipated.

While higher realisations helped at the top line

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in