Ashok Leyland reported a PBT loss of R91.4 crore in Q2FY14 versus our estimate of R162.1 crore, led by an exceptional income of R43.8 crore during the quarter on account of sale of Defiance Testing & Engineering Services. Net sales of R2,550 crore (-23% yoy) were 6% above our estimate while reported Ebitda came at R56.2 crore(-83% yoy) versus our estimate of R24.9 crore. The steep yoy decline in net sales was led by 23% yoy decline in volumes.
Working capital increased by R640 crore during April-September 2013. The increase was primarily led by decline in creditor days from 73 days as on March 31, 2013 to 59 days as on September 30, 2013. Debtor days also increased to 47 days as on September 30, 2013 from 42 days as on March 31, 2013. Inventory days were fairly stable.
Kotak Institutional Equities