Ashok Leyland Q4 Review - Below Estimate; Operating Leverage Offsets Higher Raw Material Cost: Motilal Oswal
Workers assemble engines on an Ashok Leyland Ltd. production line in Hosur, India. (Photographer Rogan Macdonald/Bloomberg News)

Ashok Leyland Q4 Review - Below Estimate; Operating Leverage Offsets Higher Raw Material Cost: Motilal Oswal

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Motilal Oswal Report

Ashok Leyland Ltd.’s Q4 FY21 revenue/Ebitda grew ~82%/192% YoY to Rs 70 billion/Rs 5.34 billion in Q4 FY21.

Adjusted profit after tax stood at Rs 2.1 billion.

Revenue/Ebitda declined by ~12%/54% to Rs 153 billion/Rs 5.4 billion in FY21. Adjusted loss stood at Rs 3 billion in FY21.

Gross margin declined by 580 basis point YoY (down 250bp QoQ) to 23.1% (estimate 24.2%), impacted by commodity cost.

Operating leverage more than offset the impact of higher raw material cost, resulting in a 290bp YoY (up 240bp QoQ) improvement in Ebitda margin to 7.6% (estimate 8.1%).

Click on the attachment to read the full report:

Motilal Oswal Ashok Leyland Q4FY21 Result Update.pdf

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