Shares of this large-cap auto stock traded flat in Thursday’s trading session after the company successfully secured an order from the Tamil Nadu Government for supply of 552 Buses for city operations.
With a market capitalization of Rs 49,884.80 crores, the stocks of Ashok Leyland Limited opened their trading hour on Thursday at Rs 168.95 and currently trades at Rs 170.10, a flat movement compared to the previous closing levels of Rs 170.05 apiece.
In a recent filing with the Bombay Stock Exchange (BSE), the auto company announced that it has secured a landmark order from “Tamil Nadu State Transport Corporation” (TNSTC) for supplying 552 Buses for a total consideration of Rs 500.97 crores.
The auto company will deliver state-of-the-art ‘BS VI’ diesel fuel-type Buses for city operations. Funded by the German Development Bank (KfW), Ashok Leyland is expected to execute the abovementioned order from April 2024 – July 2024.
“We are honored to partner with TNSTC towards the realization of the ‘Mobility for All’ initiative. As we strive to meet the rapidly expanding public mobility needs of our country, our in-depth understanding of markets and customers remains the cornerstone that distinguishes us and has been instrumental in securing these orders.”, commented Mr. Shenu Agarwal, MD & CEO, Ashok Leyland.
During the recent financial quarters, the company’s basic business parameters such as operating revenues and net profits showed opposing movements.
The former, on one end, moved up from Rs 9,691.32 crores during Q1FY23-24 to Rs 11,429.04 crores during Q2FY23-24, and, the latter, on the other end, slipped marginally from Rs 582.95 crores to Rs 566.35 crores due to increased cost pressure.
As per the recent presentations, the company maps a strong outlook for buses in H2FY24 along with a significant improvement in volumes compared to the previous period.
Ashok Leyland Limited is an auto company engaged in the business of manufacturing commercial vehicles, engines, spare parts, and other associated accessories. Deriving a majority of revenue from the domestic markets, the company’s business operations are broadly divided into two segments, viz, commercial vehicles and financial services.
Written by Amit Madnani
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