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

India Infoline News Service | Mumbai | May 25, 2016 14:01 IST

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

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.

***Note: This is a NSE Chart



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