Ashok Leyland takes a dip once again

Ashok Leyland on August 2 closed at Rs 88, down by 3.77 per cent and has continued its falling spree from August 1. Major reason for such a drastic fall has been the July sales numbers. Company’s commercial vehicle manufacturer has reported a 5 per cent decline in its sales volume at 10,492 units for the month of July compared to 11,054 units last year. Ashok Leyland's July sales were impacted by 7 per cent fall in medium and heavy commercial vehicles sales to 8,182 units. Shares of the company from the last 2 days, from August 1 have plunged by 4 per cent.

On the other hand, the company has reported strong numbers in Q1FY17. Company’s revenue has increased by 10.87 per cent to Rs 4259 crore in Q1FY17 as compared to same period in previous financial year. Its EBITDA too has risen by 9.56 per cent to Rs 3783 crore in Q1FY17 on a yearly basis. The company’s PAT has been boosted by 82.52 per cent to Rs 291 crore in Q1FY17 on a yearly basis. Its PAT has increased by 6.83 per cent in Q1FY17 as compared to same period in previous financial year.

The fall in the scrip in the last 2 days is majorly due to weak July sales numbers.Ashok Leyland is engaged in commercial vehicles and related components. Its product portfolio includes buses, trucks, light vehicles, defence vehicles and power solutions. It offers buses with seating capacity 18 to 80. Ashok Leyland offers a range of trucks for diverse applications such as long-haul, mining and construction, and distribution.