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Ashok Leyland (Q3 FY10) – Market Performer (Target Price Rs54, Upside 4.5%)

India Infoline Research Team / 16:46 , Feb 02, 2010

  • Net sales jump 81.4% yoy to Rs18.2bn on back of 101.4% yoy volume growth.
  • Operating profit surged 148% yoy and OPM expanded by 305bps yoy to 11.4%
  • Employee cost as a percentage of sales decline by 268bps yoy on back of benefits of operating leverage
  • Upgrade the stock to Market Performer from SELL
Result table
(Rs m)
Q3 FY10
Q3 FY09
% yoy
Q2 FY10
% qoq
Sales
16,136
8,011
101.4
14,301
12.8
Realisation (Rs/unit)
1,125,145
1,249,343
(9.9)
1,103,199
2.0
Net sales
18,155
10,008
81.4
15,777
15.1
Material costs
(12,214)
(6,954)
75.6
(10,430)
17.1
Purchases
(746)
(403)
85.0
(649)
14.9
Personnel costs
(1,736)
(1,225)
41.7
(1,675)
3.6
Other overheads
(1,397)
(595)
134.8
(1,362)
2.6
Operating profit
2,062
831
148.1
1,660
24.2
OPM (%)
11.4
8.3
305bps
10.5
83bps
Depreciation
(513)
(358)
43.3
(506)
1.4
Interest
(162)
(394)
(58.9)
(170)
(4.7)
Other income
20
106
(81.6)
56
(64.9)
PBT
1,407
185
659.1
1,040
35.3
Tax
(351)
26
-
(146)
141.2
Effective tax rate (%)
24.9
(13.8)
-
14.0
-
Adjusted PAT
1,056
211
400.6
895
18.0
Adj. PAT margin (%)
5.8
2.1
371bps
5.7
15bps
Extra ordinary items
(10)
(22)
(56.3)
(9)
12.3
Reported PAT
1,046
189
454.6
886
18.1
Ann. EPS (Rs)
3.2
0.6
400.6
2.7
18.0
Source: India Infoline Research

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