India's Ashok Leyland beats Q4 profit estimates on reduced costs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 24 2024
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Source: reuters
- Ashok Leyland's Financial Performance:
- Beat fourth-quarter profit estimates with a 19.8% rise in standalone profit to 9 billion rupees.
- Reduced costs offset weak demand for trucks and buses.
- Cost Reduction and Sales Volume:
- Input and services costs dropped by 7.3%, leading to a 6.5% decrease in total expenses.
- Total sales volume fell nearly 6% in the January-March period, resulting in a 3.1% revenue decline to 112.67 billion rupees.
- Industry Trends:
- Commercial vehicle sales were impacted by poor agricultural yield and higher discounts.
- Market leaders Tata Motors and Eicher Motors also experienced a drop in sales volume during the quarter.
- Segment Performance:
- Tata Motors and Eicher Motors saw profit increases driven by premium vehicle sales like Jaguar Land Rover and Royal Enfield.
- Ashok Leyland's shares surged by 3.3% to a record high following the financial results.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
