Country's second largest commercial vehicle manufacturer Ashok Leyland said it sold 10,927 units in July 2019, falling 28 percent compared to 15,199 units sold in previous year.
Shares of commercial vehicle maker Ashok Leyland fell nearly 4 percent intraday on August 1 after the company reported subdued sales in July and disappointing numbers in the quarter ended June 2019.
The stock has been under pressure, falling 40 percent in last nine-month and 22 percent in last one month on account of slowdown in auto sector. It was quoting at Rs 67.70, down Rs 2.20, or 3.15 percent on the BSE at 1358 hours IST.
The country's second-largest commercial vehicle manufacturer said it sold 10,927 units in July 2019, falling 28 percent compared to 15,199 units sold in the previous year.
Numbers also missed analyst expectations. Nomura had expected the company to report sales of 12,600 units in the month gone by.
Medium and heavy commercial vehicle sales degrew 39 percent year-on-year to 6,722 units while light commercial vehicle sales were flat at 4,205 units against 4,203 units sold in the previous year.
In addition, Ashok Leyland reported a massive 40.7 percent year-on-year fall in consolidated net profit at Rs 275 crore amid slowdown and on higher tax rate.
Revenue degrew by 7.5 percent to Rs 6,514.7 crore compared to year-ago, but earnings before interest, tax, depreciation and amortisation increased 4.2 percent to Rs 960 crore. Margin expanded 160bps to 14.7 percent in Q1 YoY.
"With signs of slower demand, we are closely watching the developments in the industry. We continue to take cost out and drive productivity and growth initiatives," Gopal Mahadevan, Whole Time Director and Chief Financial Officer said.
While having a neutral call on the stock with a target at Rs 91 per share, Nomura said revenue was 4 percent below its estimates, though EBITDA was largely in-line with expectations.
Higher tax rate led to a significant miss at the PAT level and M&HCV demand outlook continued to worsen further, it added.Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.