Q1 Results: Ashok Leyland Profit Beats Estimates
Ashok Leyland Ltd. reported its highest quarterly profit growth in over two years, surpassing analyst estimates.
Net profit of the truck and bus maker jumped 233 percent year-on-year to Rs 370 crore in the April-June quarter, according to its exchange notification. That compares with the Bloomberg consensus estimate of Rs 350 crore. The profit growth was the highest since three months ended December 2015 when it jumped 566 percent.
Revenue of the company rose 47 percent on a yearly basis to Rs 6,250 crore. This was lower than the estimated Rs 6,340 crore. Ashok Leyland sold 42,127 units between April and June, an increase of 48 percent from the year-ago period.
The operating income or the earnings before interest, tax, depreciation and amortisation rose 111 percent year-on-year to Rs 648 crore while the operating margin expanded to 10.4 percent from 7.2 percent.
Shares of Ashok Leyland rose as much as 6.5 percent to Rs 133.90 apiece after the results were announced. The stock fell 13.5 percent between April and June, compared to a 1 percent decline in the NSE Nifty Auto Index.