You are here: Home » Markets » News
Business Standard

Ashok Leyland hits 52-wk high on demand recovery hope; stk up 73% in 3 mths

M&HCV demand and inquiries have slowly started returning as operators have started paying EMIs post moratorium, eventually leading to the ease of financing

Topics
Ashok Leyland | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

On sequential basis, the company reported a 3.4 time increase in revenues and a positive EBITDA
On sequential basis, the company reported a 3.4 time increase in revenues and a positive EBITDA

Shares of hit a 52-week high of Rs 89.45, surging 6 per cent on the BSE on Tuesday, on expectation that the domestic truck and light commercial vehicle (LCV) sector recovery may continue to gather pace over the second half (October-March) of the current fiscal. The stock of the commercial vehicle company has outperformed the market in the past three months by surging 73 per cent, as against 13 per cent rise in the S&P BSE Sensex.

Following the successful launch of its Modular Platform AVTR, the company has launched Bada Dost in the Phoenix Platform in the LCV segment and Boss LE and LX in the ICV segment.

All these products were launched with the innovative I-gen6 (Mid-NOx) technology powertrain. They have been very well received by customers and have helped the company increase its market presence. Going forward the management expect Q3 and Q4 to be much better quarters.

had posted a loss of Rs 147 crore during the September quarter as against a profit of Rs 39 crore in the corresponding period of the last year. Revenue from operations during the September quarter stood at Rs 2,837 crore, down 28 per cent YoY. The company's revenue in Q2FY20 was at Rs 3,930 crore.

On sequential basis, the company reported a 3.4 time increase in revenues and a positive EBITDA (earnings before interest, taxes, depreciation, and amortisation) of 2.8 per cent for Q2FY21 against an EBITDA of -51.2 per cent in Q1FY21.

The company also generated Rs 1,208 crore of cash from operations after capital expenditure and investments, which has helped the company bring down net debt to Rs 3,076 crore from Rs 4,284 crore in Q1FY21 further strengthening the balance sheet of the company.

"M&HCV demand and inquiries have slowly started returning as operators have started paying EMIs post moratorium, eventually leading to the ease of financing. Replacement demand recovery would take some time and would increase utilization levels. The export demand is slowly returning as are opening up. Its CKD (completely knocked down) plants in Africa and the Middle East have been significantly ramped up since March 2020," Motilal Oswal Financial Services said in result update.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, November 10 2020. 12:18 IST
RECOMMENDED FOR YOU
.