Ashok Leyland This autumn Evaluation – Beneath Estimate; Working Leverage Offsets Larger Uncooked Materials Price: Motilal Oswal

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The sales / Ebitda of Ashok Leyland Ltd. in the fourth quarter of FY21 increased ~ 82% / 192% YoY to Rs 70 billion / Rs 5.34 billion in the fourth quarter of FY21.

Adjusted profit after tax was Rs 2.1 billion.

Sales / Ebitda decreased by ~ 12% / 54% to Rs 153 bn / Rs 5.4 bn in FY21. Adjusted loss for FY21 was Rs 3 billion.

The gross margin declined 580 basis points (minus 250 bp QoQ) year-on-year to 23.1% (estimated 24.2%), influenced by raw material costs.

Operational leverage more than offset the impact of higher raw material costs, resulting in an Ebitda margin improvement of 290bps year-on-year (up 240bps QoQ) to 7.6% (estimate 8.1%).

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Motilal Oswal Ashok Leyland Q4GJ21 Result Update.pdf

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