CLSA reveals what drove turnaround for Ashok Leyland; says buy the stock
Ashok Leyland’s Q2 FY21 results were better than consensus and CLSA’s estimates. EBITDA margin was at 2.8% (+430 bps vs CLSA expectations) driven by better than expected gross margins as well as lower employee and other expenses. Net debt declined by Rs 12 bn QoQ to Rs 30 bn in Q2.
Ashok Leyland is preparing for significantly higher production in the second half of FY21 as volumes for all segments (except buses) are showing sequential recovery: Reuters