Ashok Leyland: Net up 17% YoY - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Ashok Leyland: Net up 17% YoY

Apr 24, 2001

Ashok Leyland Ltd (ALL), the country's second largest manufacturer of commercial vehicles has reported a net profit of Rs 917 m for FY01, a growth of 16.8% YoY. The company's sales at Rs 22,524 m declined by only -0.2% YoY. This was better than the market as the industry volumes dropped by 22% for medium and heavy commercial vehicles.The company has achieved this through gains in market share from its nearest competitor, Telco. The company's market share in the commercial vehicles segment went upto 38% in FY01 as compared 33% in FY00. The company has sold 32,745 commercial vehicles in FY01 as compared to 37,859 in the previous year a decline of 14%. However last year's figure include 4,724 Stallions sold to the Indian army which in this year are accounted in the form of CKD sets.

The major gains made by the company have been in the bus segment, which is ALL's forte.

(Rs m)FY00FY01Change
Sales 22,572 22,524 -0.2%
Other Income 87 102 17.1%
Expenditure 20,053 19835-1.1%
Operating Profit (EBDIT) 2,519 2,689 6.8%
Operating Profit Margin (%)11.2%11.9% 
Interest 849 888 4.6%
Depreciation8248847.2%
Profit before Tax9341,0209.2%
Other Adjustments - -  
Tax 148 103 -30.7%
Profit after Tax/(Loss) 786 917 16.8%
Net profit margin (%)3.5%4.1% 
No. of Shares (eoy) (m) 118.9 118.9  
Diluted number of shares 118.9 118.9  
Diluted Earnings per share6.67.7 

The company has managed to increase its operating margins as the company concentrated on selling high margin buses and increased its defence supplies in 3QFY01 and 4QFY01. As the company's operating margins fell drastically in the 1HFY01, the company took measures to control overall costs to improve its margins.

Besides though it suffered on the domestic front, the company’s export sales grew by 10% during FY01 and increased contribution from spares and industrial and marine applications too added to the bottomline.

Due to prudent working capital management, the company's interest costs grew by only 4.6%. These efforts too were concentrated more in the latter two quarters of FY01.

As these results are in line with our expectations of a net profit of Rs 911 m for FY01, we are unlikely to revise our forecasts for FY02 and FY03 currently.

As both buses and medium good vehicles are poised for good growth in the current financial year, the company should benefit. The company has recently bagged an order of 2,051 CNG buses from the Delhi government and private operators, this is likely to give a boost to its margins in FY02.

On the current price of Rs 59, it is trading at only 7.7x FY01 EPS of Rs 7.7. It has declared a dividend of Rs 4 for FY01, which works out to a dividend yield of 6.8%.

Equitymaster requests your view! Post a comment on "Ashok Leyland: Net up 17% YoY". Click here!

  

More Views on News

ASHOK LEYLAND Announces Quarterly Results (3QFY20); Net Profit Down 92.7% (Quarterly Result Update)

Feb 17, 2020 | Updated on Feb 17, 2020

For the quarter ended December 2019, ASHOK LEYLAND has posted a net profit of Rs 278 m (down 92.7% YoY). Sales on the other hand came in at Rs 40 bn (down 36.5% YoY). Read on for a complete analysis of ASHOK LEYLAND's quarterly results.

ASHOK LEYLAND Announces Quarterly Results (2QFY20); Net Profit Down 91.5% (Quarterly Result Update)

Nov 12, 2019 | Updated on Nov 12, 2019

For the quarter ended September 2019, ASHOK LEYLAND has posted a net profit of Rs 389 m (down 91.5% YoY). Sales on the other hand came in at Rs 39 bn (down 48.4% YoY). Read on for a complete analysis of ASHOK LEYLAND's quarterly results.

ASHOK LEYLAND 2018-19 Annual Report Analysis (Annual Result Update)

Sep 16, 2019 | Updated on Sep 16, 2019

Here's an analysis of the annual report of ASHOK LEYLAND for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of ASHOK LEYLAND. Also includes updates on the valuation of ASHOK LEYLAND.

More Views on News

Most Popular

A Critical Update on the Market (Fast Profits Daily)

Mar 30, 2021

In this video, I'll tell you why I am recommending caution in the market at this time.

My Recent Recommendation Will Profit from the Global Supply Chain Crisis (Profit Hunter)

Mar 31, 2021

A tiny chemical company, started in the Licence Raj era, is a great example of a new wealth creating opportunity.

My Stock Trading Strategy (Fast Profits Daily)

Mar 31, 2021

In this video I'll show you exactly how I go about picking stocks for trading.

What You Need to Find Hundred Baggers (Profit Hunter)

Mar 30, 2021

100 baggers of the last decade share this common trait. Here's how to use it to nail future multibaggers.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

ASHOK LEYLAND SHARE PRICE


Apr 12, 2021 (Close)

TRACK ASHOK LEYLAND

  • Track your investment in ASHOK LEYLAND with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

ASHOK LEYLAND - ESCORTS LIMITED COMPARISON

COMPARE ASHOK LEYLAND WITH

MARKET STATS