Growth road map clear for Ashok Leyland as Q4 profit rises 40%

The company has increased prices by around 2 per cent to offset commodity price increase, said Vinod K Dasari, MD, Ashok Leyland

Ashok Leyland (ALL) ended 2017-18 on a positive note, clocking a higher than expected 40 per cent rise in net profit for the March quarter (Q4). The momentum is expected to continue in the medium-term as ALL focuses on higher tonnage trucks, and growth triggers such as pre-buying ahead of the BS-VI norms and the vehicle scrappage policy.

Beating estimates

ALL’s Q4 net profit at Rs 6.67 billion, beat analysts’ estimate of Rs 6.42 billion. It is a key beneficiary of the sharp recovery in the higher tonnage vehicles (above 25 tonnes load capacity), which are gaining traction led by