The Ashok Leyland shares hit an over four-year high at Rs 154.45, as the stock rallied 6% on the BSE. In May 2018, this company category traded at its highest level. On May 8, the company’s shares hit a high of Rs 168. Ashok Leyland is expected to report a muted performance in Q1FY23 amid a 19 per cent sequential decline in volumes for the quarter at 39,651 units.

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With a 2 per cent QoQ decline in ASPs at Rs 17.6 lakh/unit, net sales at Ashok Leyland is seen at Rs 6,976 crore (down 20.2 per cent QoQ). With negative operating leverage at play & marginal rise in input cost, EBITDA & EBITDA margins for the quarter are seen at Rs 457 crore, 6.6 per cent (down 230 bps QoQ). Consequently, the firm said that profit after tax is seen at Rs 161 crore against Rs 901 crore in Q4FY22.

“Quarterly margin decline is due to higher raw material cost, operational deleverage and benefit of cost reversal in 4QFY22,” it said.