Ashok Leyland is expected to post net profit at Rs 250 crore in the quarter ended March 2015 as against a reported profit of Rs 363 crore which includes an exceptional gain of Rs 376 crore on sale of long term investment and immovable property (else adjusted loss at Rs 13 crore) in the year-ago period. The company will announce its March quarter results on May 12.
As per CNBC-TV18 poll, revenue is likely to grow 53 percent to Rs 4727 crore from Rs 3076.7 crore year-on-year. EBITDA is seen increasing 2.7 times at Rs 500 crore versus Rs 184 crore (YoY) while operating profit margin is expected at 10.5 percent against 6 percent on yearly basis.
Analysts are expecting a very strong quarter led by massive rebound in the industry by medium and heavy commercial vehicles (MHCV) volumes rising 40 percent Y-o-Y. During the quarter, total volume growth is likely to be 32 percent Y-o-Y at 34155 versus 26043 units. Q4 MHCV volumes are seen up 39.5 percent at 26262 versus 18824 units (Y-o-Y) while LCV volumes likely to grow 9.3 percent at 7893 versus 7219 units Y-o-Y.
Meanwhile, the management is expecting industry volumes to expand 15-20 percent annually in FY16. The company hopes margins will improve to 12 percent in near term through better capacity utilisation, cost rationalisation and better pricing environment. The management is planning to raise export revenue share to 33 percent by entering new markets like Africa and South East Asia.
Margins are expected to rise 450 basis Y-o-Y due to pure operating leverage and stronger product mix.
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