Ashok Leyland shares extended gains to the second straight day on Friday after the company reported better-than-estimated-earnings for the January-March quarter. The stock rose as much as 5 per cent today on top of Thursday’s 4.55 per cent gains. In last two trading sessions, shares of the medium and heavy commercial vehicles maker have surged nearly 10 per cent boosting its market value by Rs. 2,250 crore to Rs. 25,684 crore.
Ashok Leyland reported a net profit of Rs. 476 crore on Thursday, which was better than the Street’s estimates. Analysts polled by NDTV Profit had estimated its net profit to come in at Rs. 424 crore. In the year ago quarter, Ashok Leyland had reported a net loss of Rs. 141 crore.
Meanwhile, revenue of the Chennai-based commercial vehicle maker surged 13 per cent to Rs. 7,057 crore in the March quarter compared to Rs. 6,237 crore year-on-year. Analysts polled by NDTV Profit had estimated its revenue at Rs. 6,515 crore.
Ashok Leyland’s revenue growth was led by 10 per cent increase in its sales volume at 38,643 units of medium and heavy commercial vehicles and 3 per cent jump in it light commercial vehicles to 8,978 units, the company said in a release.
As of 11:37 am, Ashok Leyland shares trade 3.6 per cent higher at Rs. 89.25 compared to 0.57 per cent gain in the broader Nifty. Trading volume in the counter nearly doubled as 14.69 lakh shares changed hands compared to its last two week average trading volume of 8.83 lakh shares.