Ashok Leyland to announce its Q3 numbers today: Here’s what to expect
The second quarter for Ashok Leyland was weak as margins were at a record low and this time around things might not improve a lot.
The second quarter for Ashok Leyland was weak as margins were at a record low and this time around things might not improve a lot.
According to the CNBC-TV18 poll, the street expects a weak quarter yet again as revenues are expected to fall by 34 percent while EBITDA is expected to decline by 61 percent.
Margins too is likely to see a 410 bps dip on year on year basis. It will be a sequential improvement because last quarter the margins were at around 5.8 percent.
The above-mentioned factors will likely translate to a profit decline of 81 percent when compared annually and should come around Rs 66 crore.
The main culprit for the weakness is the weak demand that the CV segment has witnessed. Apart from that one saw that Q3 volumes were down around 29 percent to come in at Rs 31,200 units and it is this decline in volumes will result in an approximately 30 percent decline in revenues.
Realisations also expected to fall by 8 percent on a year on year basis because the product mix was adverse and the company has also been giving a lot of discounts to push sales. The negative operating leverage is something that will put pressure on margins and ultimately should mean a decline in profits this time.
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