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.