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Dolat Capital: Ashok Leyland Q2 Review - Commercial Vehicle Cycle Poised For A Strong Recovery  

Dolat Capital: Ashok Leyland Q2 Review - Commercial Vehicle Cycle Poised For A Strong Recovery

Ashok Leyland’s variety of trucks. (Photographer: Pankaj Nangia/Bloomberg)
Ashok Leyland’s variety of trucks. (Photographer: Pankaj Nangia/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Ashok Leyland Ltd. reported weak numbers in Q2, impacted by the slowdown in the medium and heavy commercial vehicle market and adverse product mix.

Ebitda stood at Rs 804 million (down 65% YoY) with contracted margin at 2.8% (down 298 basis points YoY), led by negative operating leverage.

However, the longer-term outlook looks attractive with improving outlook for infrastructure, e-commerce and mining and traction in the hub-and-spoke model.

Management expects commercial vehicle numbers to see growth in H2 FY21.

Click on the attachment to read the full report:

Dolat Capital Ashok Leyland Q2FY21 Result update.pdf

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