Ashok Leyland march Sales up 27%

Sales were up 27% YoY driven by 25% Y/Y increase in truck sales. Bus sales were also robust (+30% YoY). Domestic sales saw a strong pick-up (+20% Y/Y) primarily attributed to low base effect, some element of channel stuffing and deferment of last month sales into March. Exports growth was also quite strong (+128% Y/Y). Company achieved sales of 83,300 units (below management’s target of 86,000) in FY08.

Domestic MHCV sales were up 23% YoY (YTD -11%). We reckon Ashok Leyland gained market share from Tata Motors (March domestic MHCV sales up 17% YoY). Management guided to ~8-10% growth in truck sales for the industry (in line with our forecasts) and ~15% growth for Ashok Leyland in FY09E.