Automobile company Ashok Leyland on Monday said that while it will be too early to expect anything spectacular in Q2, Q3 and Q4 will witness the industry posting better results.
“We are certainly looking at Q3 and Q4 to be decent quarters. And that is when the industry will also start to post some much better results. Q2 – let us wait and watch. It is a little too early because it all depends on the absolute volumes. It will be a little too early to expect anything spectacular in Q2 but Q3 and Q4 could be pretty good quarters in comparison to how the first half of the year would be,” said Gopal Mahadevan, whole-time director, president and chief financial officer at Ashok Leyland.
Ashok Leyland has surged 45 percent in August after positive management commentary post the Q1 earnings announcement.
“I think we are bottoming out. We have seen Q1 has virtually had no demand, Q2 seems to be picking up and I believe August should be better than July. Even if it is flattish, it is more possibly to do with the supply chain constraint than anything else," he said, adding that Q1 and Q2 will see a decline of around 30-35 percent.
Speaking about supply-side constraints, he said, “Month-on-month, there has been quite a jump in terms of improvement in supply constraints and we have seen that not only us but our supplies themselves have started to open up well and with the government now announcing the unlock 4, things will vastly improve. So I am looking forward to Q3 and Q4 and the coming months ahead.”