Stocks feedback on earnings announcements

Ashok Leyland, a Hinduja Group company, came up with upsetting numbers for the quarter ended September 30, 2019. As I write this, the stock is trading at a decline of nearly 7 per cent. On a standalone basis, the company’s revenue came in at Rs. 3,929.5 crores for Q2FY20 against Rs. 7,607.98 crores in the corresponding quarter last year, registering a decline of 48.4 per cent YoY. The EBITDA for the quarter fell by 71.6 per cent YoY to Rs. 228.58 crores from Rs. 805.83 crores in the corresponding quarter in the last fiscal, with a margin contraction of 477 bps. For the quarter, the EBITDA margin stood at 5.8% and PAT came in at Rs. 38.87 crores against Rs. 459.58 crores in the corresponding quarter last year, recording a decline of 91.5 per cent YoY.

VRL Logistics, the goods and passenger transportation provider, reported a healthy set of numbers. The stock rose by nearly 4 per cent and made an intraday high of Rs. 270 on BSE. The company’s revenue for the quarter Q2FY20 came in at Rs. 523.82 crores as against Rs. 516.99 crores in the corresponding quarter last year, registering 1.3 per cent YoY increase. The EBITDA for the quarter grew by 35.3 per cent YoY to Rs. 73.17 crores against Rs. 54.07 crores in the corresponding quarter last year, with a margin expansion of 351 bps. The EBITDA margin for the quarter stood at 14 per cent compared to 10.5 per cent in Q2FY19. PAT for the quarter came in at Rs. 34.72 crores against Rs. 20.63 crores in the corresponding quarter last year, registering a hike of 68.3 per cent YoY.

JK Cement came up with concrete numbers for Q2FY20. Despite this, the stock declined by nearly 5 per cent on BSE. The company’s revenue for the quarter Q2FY20 came in at Rs. 1,254.19 crores against Rs. 1100.62 crores in the corresponding quarter last year, registering a 14 per cent YoY increase. EBITDA for the quarter grew by 49.6 per cent YoY to Rs. 254.03 crores from Rs. 169.77 crores in the corresponding quarter last year, with a margin expansion of 483 bps. The EBITDA margin for the quarter stood at 20.3 per cent compared to 15.4 per cent in Q2FY19. PAT for the quarter came in at Rs. 108.79 crores against Rs. 64.69 crore in the corresponding quarter last year, reporting an increase of 68.2 per cent YoY.