ASHOK LEYLAND -QTRLY RESULTS - Q3 FY 2012 - 3rd Q/E dEC,2011 - SALES NOs UP 26%YoY; NET SALES( in Rs.) UP 29.3%YoY - future seems More Promising

Ashok Leyland Limited

NSE Symbol        ASHOKLEY

Ashok Leyland has reported a 29% increase in its revenue for the 3rd quarter of FY 20121 at Rs.2,880 Cr as against Rs. 2,227 Cr for the corresponding quarter of 2010-11.

Net profit for the quarter was up by 54% at Rs.67 cr (Rs.43 cr). EBITDA was up 27%. Sales volume for the quarter witnessed a healthy increase of 26% at 23,175 nos. (18,437 nos.).

Employee Cost rose by 12% at Rs.272 cr (Rs.244 cr) on the back of bonus payouts in the quarter. Evidently, this will not be there in 4^th Qtr – and to that extent, it appears that – NPT will not bear this burden in Q4.

Other Expenditure increased by 42% at Rs.268 cr as against Rs.189 cr for the corresponding quarter of the previous fiscal as also did Financial Expenses, up by 16% at Rs.55 Crs (Rs.47 cr) due to increase in working capital and higher interest costs on CAPEX loans.

Production volume for the quarter improved by 25% at 24,153 nos. (19,291 nos).

 For the nine months ended December 2011, sales revenue was higher by 16% at Rs. 8,470 Crs (Rs. 7,289 Crs). Net profit was, however, down 7.8% at Rs. 307 Crs (Rs 333 Crs). The Bonus increase of Rs.28 Cr and other expenditure increase have decreased total 9 months Profit to some extent.

"Despite a substantial improvement in our quarter sales and profits, Q3 was a challenging one due to a few supply chain issues," said Mr. Vinod K. Dasari, Managing Director, Ashok Leyland. "These have since been resolved. STU demand was weaker in Q3 but is expected to bounce back in Q4. The initial feedback from customers for DOST has been very favourable and we are quickly ramping up production to meet the demand," added Mr. Dasari. 

As can be seen from previous year’s results, Q4 usually is a strong quarter.

Basic EPS,on a FV of Rs.1 is Rs.0.25 in Q3 FY 12; Rs.        0.58 in Q2 FY12; Rs.0.65 in Q1 FY 12; Rs.0.33 In Q3 FY 11; and Rs.2.24 in Q4 FY 11.Q1 FY 12 and earlier Qtrs were on Lower Equity prior to 1:1 Bonus issue.

Can, ALL repeat this level of Q4 FY 11  EPS in Q4 FY 12 also. From what the MD says – they are confident of a Good Q4 FY 12.

The table below gives the difference in percentage terms of the Qtr preceding with Q3 FY 12.

As can be seen, Net sales has gone up by 29.3% fromQ3 FY11.

Expenditure also has gone up by around 29% over Q3 FY11.

OPT has gone up by 22.11% over Q3 FY 11.

Net Profit has gone up by 54.27% over Q3 FY11.

Q4 FY 11 was a much better quarter than all other quarters. If this is repeated in Q4 FY 12- current year results will be very healthy for Ashok Leyland. ALL, judging from its announcements (Below), has reasonable order Book to achieve the same.

RESULTS TABLE

Ashok Leyland	31-Dec-11	30-Sep-11	%Dif1	30-Jun-11	%Dif 2	31-Dec-10	%Dif3	31-Mar-11
Net Sales	287979.7	309457.08	-6.94	249550.6	15.4	222724.51	29.3	382853.13
Increase in SIT / WIP	-10338.42	16293.92	-163.5	-23767.23	-56.5	-14939.53	-30.8	10652.43
Raw Materials	207566.78	202032.69	2.74	196063.31	5.87	171785.99	20.83	258939.4
Traded Goods	15647.45	9246.94	69.22	7514.54	108.2	6090.11	156.93	6437.89
Employees Cost	27232.2	25151.35	8.27	24973.91	9.04	24392.33	11.64	30181.01
Depreciation	8662.86	8593.25	0.81	8465.88	2.33	6469.08	33.91	7721.21
Other Expenditure	26834.51	23616.67	13.63	20304.12	32.16	18792.95	42.79	25655.33
Total Expenditure	275605.38	284934.82	-3.27	233554.53	18	212590.93	29.64	339587.27
Profit from Operations	12374.32	24522.26	-49.54	15996.07	-22.64	10133.58	22.11	43265.86
Other Income	323.25	1032.7	-68.7	411.77	-21.5	167.33	93.18	411.71
Interest	5501.23	6269.78	-12.26	5334.54	3.12	4748.1	15.86	4507.75
Profit  before tax	7196.34	19285.18	-62.68	11073.3	-35.01	5552.81	29.6	39169.82
Tax expense	506	3877	-86.95	2448	-79.33	1216	-58.39	9347
Net Profit	6690.34	15408.18	-56.58	8625.3	-22.43	4336.81	54.27	29822.82
Face Value (In Rs	1	1	0	1	0	1	0	1
Paid Up Equity	26606.8	26606.8	0	13303.42	100	13303.42	100	13303.42
Basic EPS	0.25	0.58	-56.9	0.65	-61.54	0.33	-24.24	2.24
Public Holding (%)	49.02	49.02	0	49.02	0	49.02	0	49.02

ANNOUNCEMENTS

 BY ASHOK LEYLAND

20-12-2011          press release dated December 20, 2011, titled "Ashok Leyland increases stake in Optare plc to 75.1%

14-11-2011          press release dated November 14, 2011, titled "Ashok Leyland to supply 700 Cluster CNG buses to Delhi

04-10-2011          press release dated September 29, 2011, titled "Ashok Leyland bags order for 723 vehicles for Tanzania

25-05-2011          press release dated May 25, 2011, titled "Ashok Leyland bags order for 290 Double Deckers for Bangladesh

FURTHER NEWS :

24TH,FEB,2012 :ALL has sold the  DOST  over 500 units in 4 southern states,MH and GUJ.ALL hopes to use most of its capacity of 55000 Units in FY 2013 (say about 35 to 40000 Units). It is preparing to launch 2 more LCVs, Style and Partner - apart from a CNG variant of DOST. From hereon, ALL seeks to launch NEW LCVs every six months. ALL says "Passenger vehicle is going to be one of the surprises from Ashok Leyland"

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