NIFTY 50

Ashok Leyland Q2 Earnings: Profit likely to fall by 90%

Updated : November 08, 2019 10:30 AM IST

Auto major Ashok Leyland will announce its second-quarter results today and being a commercial vehicle player, the losses are going to look very large. Here's what to expect:

  • The revenues are likely to be down 49 percent while the profit could go down by 90 percent.

  • In the second quarter in a row, the company will report single-digit margins. In fact, margins are expected to be at a multiyear low.

  • Margins are likely to be at 5.7 percent versus 10.9 percent the same time last year and about 7 percent last quarter.

  • Realizations will also fall because of higher discounts and the operating deleveraging of the company.

  • In terms of overall sentiment, the management has indicated that there will be no recovery until the second half of the fiscal.
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