Ashok Leyland Shares Slip as March Sales Disappoint, Miss Street Estimates
Ashok Leyland shares came under pressure after the company reported weaker-than-expected March sales. It falls short of the estimates of the market and dampening investor sentiment.
Ashok Leyland shares declined after the company reported weaker-than-expected March sales, falling short of street estimates and raising concerns over near-term demand in the commercial vehicle segment.
The shares of Ashok Leyland fell 7% from intraday highs on Wednesday, April 1. The March sales report failed to answer the demands of the analyst. Meanwhile, the sales of the vehicle sales grew upto 5% year-on-year to 25,381 units. It is considerably below the 15% growth forecast. However, the truck sales saw an 11% boost, bus sales declined 24%, and M&HCV areas growth lagged new averages. It is reversing the strong previous momentum that drived the stock to 52-week highs in February.
Ashok Leyland Ltd. saw its stock price withdraw radically from daily highs, shedding as much as 7% on Wednesday, April 1. The decline followed the free of its March sales figures, which fell short of market demands. Meanwhile, the sales of the vehicle for the medium and heavy commercial vehicle creator climbed 5% this year upto 25,381 units. This figure contrasts straightaway with the 15% growth hoped by a CNBC-TV18 poll. It had about the predictable sales of 27,750 units.
The company's commercial vehicle sales posted an 11% boost in sales, reaching 14,470 units. However, the bus segment faced a significant downturn. The sales falling up to 24% compared to the prior year which means about 3,048 units. Meanwhile, M&HCV sales saw an insignificant 3% year-on-year changes to 17,518 units.
The sale of the Light Commercial Vehicle performed better, up 12% to 7,863 units. Importantly, the growth rates across key areas lagged their particular three-month averages, with truck segment development at 11% compared to a 37% average. The growth of the LCV is at 12% against a 25% average. The bus category is 24% decline marked its steepest drop in various months.
