Ashok Leyland shares gain on robust monthly sales

Shares of Ashok Leyland climbed higher in morning trade on April 3 after the company posted robust monthly sales numbers for March.

The company recorded total sales of  23,926 units in March, up 19 percent from 20,123 units in the corresponding month year ago.

Total sales volumes were also higher than global research and broking firm Nomura’s estimate of 22,000 units.

At 10.40 am, shares of Ashok Leyland were trading at Rs 141.70 on the National Stock Exchange, clocking in 1.7 percent gains from the previous close.

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Sales volumes in the medium and heavy commercial vehicle segment also grew 20 percent to 16,773 units as against 13,990 units in the year ago period.

For FY23, the company witnessed total sales of 192,205  units, reflecting a 50 percent on year growth from FY22’s 128,326 units.

Brokerage firm ICICIdirect believes the growth in medium and heavy commercial vehicle segment was particularly strong as the bus segment came out of the woods post the slump witnessed over last few years.

“Going forward, with cyclical upswing underway in commercial vehicle (CV) space and greater infrastructure spends by government, we expect CV volumes to witness growth over FY24E-25E, albeit at a slower rate given the high base of FY23,” the brokerage firm wrote in a note.