Ashok Leyland - Lackluster Performance
Thursday, May 08, 2008
Domestic sales were muted (up 1% YoY) offset by a significant decline in export sales (-57% YoY). Truck sales grew by 5% YoY aided by low base effect last year. Bus sales fell 29% YoY primarily due to high base effect, we believe base effect will remain challenging for bus sales over the next 4-5 months.Domestic MHCV goods sales grew by 7% YoY. Our channel checks indicate that retail offtake is not very buoyant but growth is being aided by a low base last year. Freight rates remain reasonably buoyant: +2%Y/Y, +1%MoM – the recent hike in diesel prices has been partially passed on.
Management maintained its outlook of 8-10% growth in truck sales for the industry and ~15% growth for Ashok Leyland in FY09E. We believe market share gains for Ashok Leyland will be extremely difficult as Tata Motors launches its new products over the next two years.
Recent Corporate Earnings / Breaking News
- Allahabad Bank - Scope for Improvement
- Toshiba + JSW for Turbine Joint Venture
- Power Trading Corporation - Margins Tripped
- JSW Steel - Hit by Rising Cost
- Elder Pharma - Strong Dose of Results
- GMR - Sabiha Gokcen International Airport
- Omaxe embraces Spa + Massage Business
- Adlabs Films + Lotus Five Star Cinemas Deal
- Bharati Shipyard - Slowing Down
- Balrampur Chini - Margins Sweetening
