- 20 May 2022
- ICICIdirect Research
ASHOK LEYLAND POSTS ROBUST OPERATIONAL PERFORMANCE IN Q4FY22
ASHOKLEY - 229 Change: -3.52 (-1.52 %)News: Ashok Leyland posted a healthy set of numbers with topline for Q4FY22 coming in at Rs. 8,744 crore (up 58% QoQ). EBITDA for the quarter came in at Rs. 776 crore with corresponding margins at 8.9%, up 490 bps QoQ. Consequent reported profit after tax stood at Rs. 901.4 crore vs. our profit estimate of Rs. 202.8 crore. PAT for the quarter was supported by exceptional one-time gains of Rs.470.3 crore
Views: Quarterly numbers were much ahead of our estimates. Margin beat was largely on the back of more than anticipated operating leverage benefits amid ~43% QoQ rise in volume with gross margin decline being limited to 30 bps. The company generated significant CFO amounting to ~Rs. 2,650 crore for FY22 with FCF at ~Rs. 2,150 crore. The company is on its path to reap benefits of cyclical upswing in the CV space. We expect the stock to be positive in opening trade today
Impact: Positive