Ashok Leyland posted net profit at Rs 241.1 crore in Q4FY21. It experienced a loss of Rs 57.3 crore in the year-ago period.
On June 25, after the company, Ashok Leyland turned profitable in the fourth quarter of FY21, Ashok Leyland share price added 9 per cent intraday.
In the year-ago quarter, its standalone revenue was up 82 per cent at Rs 7,000.5 crore versus Rs 3,838.5 crore.
Gross margins declined 580bp YoY (-250bp QoQ) to 23.1 per cent (against estimates of 24.2 per cent), hit by commodity cost inflation, shared Motilal Oswal.
The brokerage said that net seems stable QoQ. But, it is higher by around Rs 11.5 billion YoY to Rs 28.9 billion.
“We believe H2FY22E could mark the start of a multi-year upcycle in M&HCV demand. However, we upgrade our FY22E/FY23E estimates by~11 percent/14 percent as the CV OEM’s margins positively surprises despite cost headwinds,” ICICI Securities said.
Ashok Leyland at 10.31 am was quoting at Rs 127.30, up Rs 9.10, or 7.7 per cent on the BSE.
On February 4, 202, the share touched a 52-week high of Rs 138.85. On June 4, 2021, a 52-week low of Rs 45.25. It is trading 8.32 per cent below its 52-week high and 181.33 per cent above its 52-week low.
Ashok Leyland has an excellent background across the automobile industry. It has nine manufacturing plants across the world.