Ashok Leyland's Q4FY16 standalone net profit declines 67% yoy to Rs.77.02 crore : Estimates Mixed

The company’s standalone revenue stood at Rs. 5,955.28 crore, up 32.17% yoy and 45.77% qoq.

May 25, 2016 2:01 IST | India Infoline News Service
Ashok Leyland
Ashok Leyland, flagship of Hinduja Group and commercial vehicle maker, reported standalone net profit of Rs.77.02 crore for the quarter ended March 31, 2016, registering decline of 66.51% yoy and 61.22% qoq. The company’s revenue stood at Rs. 5,955.28 crore, up 32.17% yoy and 45.77% qoq.

Its standalone core operating profit of Rs. 753.10 crore for the quarter, clocked growth of 64.76% yoy and 75.26% qoq. Operating profit margin for the current quarter at 12.65% expanded by 251 bps yoy and 213 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 721.77 crore, growing by 115.58% yoy. Its standalone revenue for the period stood at Rs. 18,821.58 crore, registering growth of 38.78% yoy.

Ashok Leyland Ltd's core operating profit stood at Rs. 2,165.96 crore, recording growth of 110.98% yoy. Operating margin for the current period at 11.78% expanded by 421 bps yoy.

Ashok Leyland (Q4 FY16) – Strong operationally, impairment hits profitability:

Ashok Leyland reported higher than estimated revenues driven by higher than expected realizations. Volume growth was at 28.8% yoy, while revenue growth was at 32.2% yoy. OPM was at 12.6% higher than IIFL estimates of 12.2%. OPM expanded 250bps yoy and 213bps qoq. Net profit at Rs77cr was impacted by impairment of investments worth Rs 379.25 crore.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 5955.28 5742 3.71
Standalone Net Profit 77.02 389 [80.20]

Standalone EPS for the quarter stood at Rs. 0.27.

Bloomberg estimated the company’s standalone net profit at Rs. 426.36 crore.

Stock Commentary:

Ashok Leyland Ltd is currently trading at Rs. 99.75, down by 1.95 points or 1.92% from its previous closing of Rs. 101.7 on the BSE.

The scrip opened at Rs. 103.3 and has touched a high and low of Rs. 105.25 and Rs. 99.1 respectively. So far 9770324(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 28942.57 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 112.8 on 13-Apr-2016 and a 52 week low of Rs. 63.95 on 16-Jun-2015. Last one week high and low of the scrip stood at Rs. 103.8 and Rs. 99 respectively.

The promoters holding in the company stood at 50.38 % while Institutions and Non-Institutions held 16.32 % and 33.3 % respectively.

The stock is currently trading above its 50 DMA.

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