- 11 Nov 2022
- ICICIdirect Research
Ashok Leyland posts steady performance in Q2FY23
ASHOKLEY - 256 Change: 2.65 (1.04 %)News:
Total operating income for the quarter came in at Rs 8266 crore, up 14.4% QoQ amid 14% QoQ growth in volumes at 45,295 units. EBITDA in Q2FY23 was at Rs 537 crore with corresponding EBITDA margins at 6.5%, up 210 bps QoQ. Consequently, PAT came in at Rs199 crore vs. 68 crore in Q1FY23
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Blended realisation for the quarter came in at Rs 18.2 lakh/unit, flat QoQ basis amid a marginal decline in M&HCV share of volumes (61.5% for Q2FY23 vs. 63% in Q1FY23). The results were broadly on expected lines with real surprise being smart 130 bps expansion in gross margins, with higher employee costs limiting the benefits of the same. We continue to remain positive on the stock amid a cyclical recovery under way in the CV space domestically with the company’s prominent presence in the E-mobility space as well (electric buses)
Impact:
Neutral