KRChoksey: Ashok Leyland - Near Term Weakness; Long Term Outlook Intact
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Ashok Leyland Ltd.’s Q1 FY21 revenue was down by 88.5% YoY and (down 83% QoQ) to Rs 650.9 crore compared to our estimates of Rs 592.30 crore.
Medium and heavy commercial vehicles’ (M&HCV) total volumes were down by 96% YoY to 1,021 units, while total volumes of light commercial vehicle (LCV) segment declined of 78% to 2,793 units.
Total Volumes (M&HCV and LCV) were down by 90% to 3814 units. The company reported absolute Ebitda loss of Rs 333.20 crore in Q1 FY21 compare to Ebitda of 537 crore in corresponding quarter last year. Decline in Ebitda was on account of higher fixed cost due to lockdown and lower operating leverage.
For Q1 FY21, Ashok Leyland reported net loss of Rs 389 crore as compare to net profit of 230.20 crore in corresponding quarter last year.
Decline in profitability was due to poor operating performance and sharp decline in overall revenue. Earning per share for the quarter stood at Rs (1.32) as against Rs 0.78 in Q1 FY20.
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