Ashok Leyland Ltd and MRF Ltd, along with other major companies, will be in the spotlight on Friday as they announce their financial results for the quarter ending September 30, 2024.
Analysts anticipate that Ashok Leyland, the flagship company of the Hinduja Group, may report a decline in both revenue and profit for the second quarter of this fiscal year.
“The company’s revenue is projected to fall by 12 per cent year-on-year to ₹84.8 billion, driven by a 7 per cent decrease in volumes and a 5 per cent drop in realization. Medium and Heavy Commercial Vehicle (M&HCV) volumes are expected to be down by 10 per cent, while Light Commercial Vehicle (LCV) volumes may decline by 2 per cent. The decline in realization is attributed to an unfavourable tonnage mix,” according to Mumuksh Mandlesha, Research Analyst at Anand Rathi Institutional Equities.
Ashok Leyland’s EBITDA margin may contract by 40 basis points year-on-year to 10.8 per cent due to negative operating leverage, with profit after tax (PAT) likely to decrease 8 per cent year-on-year to ₹5.4 billion.
In the same quarter last year, Ashok Leyland reported a PAT of ₹561 crore and revenue of ₹9,638 crore, driven by an 18 per cent increase in M&HCV sales and stable LCV volumes.
MRF
Leading tyre manufacturer MRF is expected to post a profit in the range of ₹480–490 crore, with revenue estimated at around ₹7,200 crore.
For comparison, MRF’s profit in the same quarter last year saw a substantial year-on-year increase, reaching ₹572 crore from ₹124 crore, while revenue rose by 6 per cent to ₹6,088 crore.