Ashok Leyland has reported a net profit of Rs 194 m for the 3QFY01, a growth of 104% YoY. The company's sales fell by 6.1% in the 3QFY01, on the back of 22% drop in volumes and a 20% growth in average realisations during this quarter. However due to strict cost control measures the company's operating margins increased to 9.8% in the 3QFY01, an increase of 170 basis points.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy) (m)
Diluted number of shares
Diluted Earnings per share*
The main drivers to the company's operating margin was the fact that company has sold higher amount of CNG buses as well as its defence supplies have risen. These are higher margin products. Also the company's spare parts sales have boosted its margins.
In terms of costs the company has managed to reduce its interest costs by 31% YoY in the 3QFY01 due to better working capital management.
Overall the results are higher than ours and market expectations due to better expense management by the company. In the light of these results we will need to revise our results for FY01 upwards.
On the current price of Rs 47, the company is trading at 7.1x FY00 EPS of Rs 6.6.
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