Ashok Leyland on Thursday said it received a large order from a logistics start-up company, Procure Box. The start-up has placed an order of 1400 intermediate commercial vehicles for its fuel distribution business across 750 districts, in the country. The order encompasses the Ashok Leyland product - the Ecomet - and will be executed in the next 5-6 months.

Anuj Kathuria, chief operating officer, Ashok Leyland, said, With this order, our orderbook for ICVs has enhanced significantly.

Ashok Leyland's total auto sales have been exhibiting continued sequential improvement since May 2020. The commercial vehicles maker total sales have risen from 1,277 units in May 2020 to 6,325 units in August 2020.

However, when to compared to their corresponding periods last year, the company's auto sales have significant catch up to do. Ashok Leyland's August 2020 sales were still lower by 31% as compared to 9,230 units sold in the same period last year.

Ashok Leyland, flagship of the Hinduja group, is among the largest manufacturer of commercial vehicles in India and also among the biggest manufacturers of buses and trucks globally.

The company posted a consolidated net loss of Rs 388.82 crore in Q1 June 2020 compared with net profit of Rs 274.96 crore reported in Q1 June 2019. Net sales for quarter ending June 2020 stood at Rs 1,480.16 crore, tumbling 77.3% from Rs 6,514.73 crore in the same period last year.

The scrip fell 1.40% to Rs 77.75 on the BSE. It traded in the range of 76.85 and 79.20 so far during the day.

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Ashok Leyland received a large order from a logistics start-up company, Procure Box. The company has placed an order of 1400 intermediate commercial vehicles [ICVs] for its fuel distribution business across 750 districts, in the country. The order encompasses the most successful Ashok Leyland product - the Ecomet and will be executed in the next 5-6 months.

With the addition of 1400 new Ashok Leyland ICVs, the logistics start-up and its associates will become the top fuel bowsing and Gas cylinder logistics company in the industry.

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Ashok Leyland Ltd is up for a fifth straight session in a row. The stock is quoting at Rs 79.1, up 1.61% on the day as on 12:49 IST on the NSE. The benchmark NIFTY is up around 0.42% on the day, quoting at 11570.45. The Sensex is at 39237.39, up 0.49%. Ashok Leyland Ltd has risen around 26.16% in last one month.

Meanwhile, Nifty Auto index of which Ashok Leyland Ltd is a constituent, has risen around 4.04% in last one month and is currently quoting at 8033.5, up 1.86% on the day. The volume in the stock stood at 373.35 lakh shares today, compared to the daily average of 525.47 lakh shares in last one month.

The benchmark September futures contract for the stock is quoting at Rs 79.15, up 1.67% on the day. Ashok Leyland Ltd is up 31.94% in last one year as compared to a 6.96% spurt in NIFTY and a 16.56% spurt in the Nifty Auto index.

The PE of the stock is 0 based on TTM earnings ending June 20.

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Ashok Leyland has received letter of award for two projects from National Highways Authority of India. The aggregate value for both projects is Rs 1390 crore.

Project details -

a. Request for Proposal for Four laning of Arrah to Pararia section of NH-319(old NH-30) from Km 0+000 to Km 54+530 (Design Chainage) in the State of Bihar under Bharatmala Pariyojana Phase -1 on EPC Mode (Package-I), the accepted Contract Value for which is Rs.700 crore; and

b. Request for Proposal for Four laning of Pararia to Mohania section of NH-319(Old NH-30) from Km 54+530 to Km 115+330 (Design Chainage) in the State of Bihar under Bharatmala Parlyojana Phase-I on EPC Mode (Package II), the accepted Contract Value for which is Rs.690 crore.

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