Ashok Leyland shares declined over 5 per cent on Thursday after the company reported below expectation results for the second quarter ended September 30, 2015. (Photo: PTI)
Ashok Leyland shares declined over 5 per cent on Thursday after the company reported below expectation results for the second quarter ended September 30, 2015.
The company reported over two-fold rise in net profit at Rs 287 crore for the second quarter ended September 30, 2015. The Chennai-based company had posted a net profit of Rs 121 crore during the same period of previous financial year.
At 1.19 pm, shares of Ashok Leyland were trading 5.10 per cent down at Rs 87.45. The scrip opened at Rs 91.20 and had touched a high and low of Rs 91.45 and Rs 87.30, respectively, in trade so far. Sensex was down 84 points at 26,469.
Bharat Gianani, senior research analyst, automobile, Angel Broking said, “Ashok Leyland 2QFY16 results were below estimates on back of lower-than-expected topline and higher depreciation charge. Revenues grew 54 per cent year-on-year (YoY) to Rs 4,940 cr coming lower than our estimates of Rs 5,281 cr.”
Nomura in a research report said, “Key disappointment in the results was the sharp 100 basis points quarter-on-quarter (QoQ) decline in gross margins. This was partly attributable to the around 50 per cent dip in defence revenues QoQ and lower service revenues in exports. PAT disappointment was higher as tax rate stood at around 33.7 per cent vs our estimate of 25 per cent. Net sales stood below our estimate of Rs 5,080 crore.
Net sales of Ashok Leyland increased to Rs 4,878.81 crore during the second quarter under review, as against Rs 3,150.36 crore in the corresponding quarter last year.
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