Road ahead might be better for Ashok Leyland

Sept quarter results below expectation on many measures but there are reasons to think this might be a blip

Commercial vehicle (CV) major Ashok Leyland had a below expectation performance for the quarter ending September on most parameters. However, the road ahead is expected to be better, with analysts believing it should do well in the second half of 2017-18.

Net sales at Rs 6,047 crore (up 31 per cent year-on-year), operating profit at Rs 609 crore (up 13.5 per cent) and net profit at Rs 334 crore (up 13.5 per cent) were below the Bloomberg consensus estimates of Rs 6,178 crore, Rs 680 crore and Rs 384 crore, respectively.

The management said this was satisfactory in the current market condition.