Shares of Ashok Leyland experienced a downturn of over 3% on November 4, 2024, as the company reported a slight decline in sales figures for October. Trading at ₹204 around 11:10 AM, the stock has gained 10% year-to-date, mirroring the performance of the Nifty 50. However, the company has faced monthly losses from August to October, raising concerns for investors.
The decline in sales figures
In October, Ashok Leyland reported total vehicle sales of 15,310 units, marking a 9% decline compared to 16,864 units in October 2023. Domestic sales fell by 11%, with only 14,067 units sold this year compared to 15,759 the previous year. Notably, sales of Medium and Heavy Commercial Vehicles (M&HCV) decreased by 12% to 7,455 units, while Light Commercial Vehicle (LCV) sales also dropped by 12% year-on-year.
Financial performance insights
Despite the sales dip, Ashok Leyland's revenue from operations showed resilience, growing by 5% year-on-year to ₹8,599 crore for the April-June period. However, the standalone net profit saw an 8.7% decline, amounting to ₹525.58 crore in Q1 FY25.
Key takeaways
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