Ashok Leyland Q3 profit seen up 35%, revenue may rise 13%

Commercial vehicle maker Ashok Leyland's third quarter profit is seen rising 35 percent year-on-year to Rs 269 crore, driven by higher other income and lower interest cost.

Revenue during the quarter is likely to increase 13.4 percent to Rs 4,635 crore compared with Rs 4,085.3 crore in year-ago period, though volume growth slowed down to 6.2 percent due to demonetisation.

Total volumes increased 6 percent year-on-year to 32,838 units, with MHCV (medium & heavy commercial vehicle) sales rising 9 percent. Light commercial vehicle sales declined 2.5 percent.

MHCV industry demand severely impacted post demonetisation with 40-50 percent MoM decline in retail sales since October. Profitability of fleet operators remained under pressure due to lower capacity utilisation and lower freight rates.