Ashok Leyland misses quarterly profit estimates as rising raw material costs offset sales gains
The Indian automaker reported a 4.5 percent profit rise that missed estimates due to high expenses. Higher revenue failed to offset rising raw material costs.
Insights:
Ashok Leyland Limited reported a quarterly profit rise of 4.5% to 7.96 billion rupees for the October–December period, missing the 9.42 billion rupees estimated by analysts. This earnings miss, reported on Wednesday in India 
IN, coincided with a 2.4% decline in the company's share price as investors reacted to the impact of rising input costs on the firm's bottom line.
IN, coincided with a 2.4% decline in the company's share price as investors reacted to the impact of rising input costs on the firm's bottom line.Despite missing profit expectations, the company saw its revenue climb 21.7% to 115.34 billion rupees during the quarter, a figure that was above expectations. This growth in sales was bolstered by a commercial-vehicle tax cut that supported demand across the sector. However, the gains from increased sales were largely offset by a significant surge in expenditures.
