1QFY2012 Result Update | Automobile

July 20, 2011

Ashok Leyland
Performance Highlights
Y/E March (` cr)
Net sales Adj. EBITDA Adj. EBITDA margin (%) Reported PAT
Source: Company, Angel Research

BUY
CMP Target Price
% chg (yoy)
6.3 (0.1) (60)bp (29.7)

`50 `62
12 Months

1QFY12 1QFY11
2,496 235 9.4 86 2,348 235 10.0 123

Angel est.
2,505 238 9.5 102

% diff
(0.4) (1.2) (8)bp (15.1)

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

Automobile 6,631 1.2 82/45 692,284 1 18,502 5,567 ASOK.BO AL@IN

For 1QFY2012, Ashok Leyland (ALL) registered an in-line top-line and operating performance, but high depreciation and interest costs negatively affected the companys profitability. The increase in average net realisation led to the companys top-line growth, whereas higher working capital requirements and additions to the gross block in 4QFY2011 led to higher financing and depreciation costs, respectively. We broadly maintain our volume and earnings estimates and continue to maintain our Buy view on the stock. In-line operating performance; high interest and depreciation costs impact profitability: ALL reported modest 6.3% yoy (down 34.8% qoq) growth in its top line to `2,496cr, driven by an 18% yoy (remained flat qoq) increase in average net realisation. Volume performance, however, was subdued during the quarter, reporting a 9.9% yoy decline (35% qoq), resulting in 500bp of market share loss in the M&HCV segment, which currently stands at 22.2%. Adjusted EBITDA margin came in at 9.4%, registering a decline of 60bp yoy as compared to 10% in 1QFY2011 and in-line with our estimates of 9.5%. Sequentially, however, the operating margin declined by 389bp from 13.3%, largely due to the decline in volumes, which negatively affected the companys operating leverage. Margins were supported by price increases carried out by the company. ALL reported a 29.7% yoy decline (71.1% qoq) in net profit to `86cr on account of higher-thanexpected interest and depreciation expenses. Outlook and valuation: We expect ALL to report a healthy CAGR of 1213% in revenue, driven by a 910% increase in volumes over FY201113E. We estimate the company to report EPS of `5.6 in FY2013E. At `50, ALL is trading at attractive valuations of 8.8x FY2013E EPS. We maintain our Buy rating with a revised target price of `62, valuing the stock at 11x FY2013E earnings. Key financials
Y/E March (` cr) Net sales % chg Net profit % chg EBITDA (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 38.6 22.5 27.9 11.0

Abs. (%) Sensex Ashok Leyland

3m (5.0)

1yr 3.5

3yr 35.7 79.0

(8.6) (29.7)

FY2010 7,407 21.5 423.7 123.0 10.3 3.2 17.3 2.8 10.7 9.2 1.0 10.6

FY2011 11,366 53.4 631.3 49.0 10.7 4.7 10.5 2.5 16.5 14.2 0.6 6.5

FY2012E 12,792 12.6 603.5 (4.4) 9.9 4.5 11.0 2.4 14.9 12.8 0.6 6.7

FY2013E 14,497 13.3 750.5 24.4 10.3 5.6 8.8 2.0 17.3 14.4 0.5 5.6

Yaresh Kothari
022-3935 7800 Ext: 6844 yareshb.kothari@angelbroking.com

Please refer to important disclosures at the end of this report

Ashok Leyland | 1QFY2012 Result Update

Exhibit 1: Quarterly performance

Y/E March (` cr) Net dales Consumption of RM (% of sales) Staff costs (% of sales) Purchases of TG (% of sales) Other expenses (% of sales) Total expenditure Adj. EBITDA Adj. EBITDA margin (%) Interest Depreciation Other income PBT (excl. extr. items) Extr.(Income)/Expense PBT (incl. extr. items) (% of sales) Provision for taxation (% of PBT) Reported PAT PATM (%) Equity capital (cr) EPS (`)
Source: Company, Angel Research

1QFY12 2,496 1,723 69.0 250 10.0 75 3.0 213 8.5 2,260 235 9.8 53 85 4 101 (9) 111 4.4 24 22.1 86 3.5 133 0.6

1QFY11 2,348 1,665 70.9 203 8.6 69 3.0 175 7.5 2,113 235 10.0 32 61 5 147 147 6.3 24 16.6 123 5.2 133 0.9

% chg 6.3 3.5 23.3 8.3 21.1 7.0 (0.1) 68.7 37.7 (12.9) (31.1) (24.7) 0.3 (29.7)

FY2011 11,118 7,848 70.6 960 8.6 273 2.5 819 7.4 9,900 1,218 11.0 164 267 15 802 802 7.2 171 21.3 631 5.7 133

FY2010 7,245 4,973 68.6 666 9.2 245 3.4 598 8.3 6,482 763 10.5 81 204 70 548 3 545 7.5 121 22.2 424 5.8 133 3.2

% chg 53.5 57.8 44.1 11.6 36.9 52.7 59.6 101.7 31.0 (78.2) 46.3 47.2 40.8 49.0

(29.7)

4.7

49.0

Exhibit 2: Quarterly volume performance

Y/E March (units) M&HCV passenger M&HCV goods LCV Total volume Export (Inc. above)
Source: Company, Angel Research

1QFY12 5,328 13,755 194 19,277 2,539

1QFY11 5,088

% chg 4.7

FY2011 25,226 68,010 870 94,106 10,306

FY2010 18,481 44,348 1,097 63,926 5,979

% chg 36.5 53.4 (20.7) 47.2 72.4

16,038 (14.2) 274 (29.2) 21,400 1,940 (9.9) 30.9

In-line top-line performance driven by increased average net realisation: For 1QFY2012, ALL reported modest 6.3% yoy growth in its top line to `2,496cr, driven by an 18% yoy increase in average net realisation. Volume performance, however, was subdued during the quarter, reporting a 9.9% yoy decline. Average net realisation improved to `1,294,551 on account of price increases to mitigate raw-material cost pressures and emission norm changes. On a sequential basis, the companys revenue declined by 34.8% as volumes were lower by 35%. The engine business posted volume of ~3,400 units in 1QFY2012 compared to ~3,900 units in 1QFY2011, whereas the defense business reported volume of ~500 sets during the quarter. The spare parts business recorded revenue of ~`170cr as against ~`135cr in 1QFY2011.

July 20, 2011

Ashok Leyland | 1QFY2012 Result Update

Exhibit 3: Volumes decline 10% yoy

(units) 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 (58) (17) 101 72 14 15 (10) ALL total volumes 178 139 yoy change (RHS) (%) 200 150 100 50 0 (50) (100)

Exhibit 4: Net sales up 6.3% yoy

(`cr) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0
Net sales (LHS) Net sales growth (RHS)

(%) 200 150

157.3 81.6 (15.7) (51.6) 141.3 72.0 22.5 30.3 6.3

100 50 0 (50) (100)

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

Source: Company, Angel Research

Source: Company, Angel Research

During 1QFY2012, ALL lost 500bp of its market share in the M&HCV segment and its share currently stands at 22.2%. ALL is targeting a market share of 26-27% by the end of FY2012E.

Exhibit 5: Segment-wise market share trend

(%) 60 50 40 30 20 10 0 29.6 17.1 14.2 22.7 19.3 23.1 18.5 39.0 43.0 37.9 26.6 24.4 42.0 35.7 27.0 25.3 27.7 20.5 24.9 15.6 24.6 27.1 M&HCV passenger M&HCV goods 49.9 Total M&HCV 45.0

1QFY12

39.9

22.2 19.2

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

Source: Company, SIAM, Angel Research

Price increases sustain operating margins: ALLs adjusted EBITDA margin came in at 9.4%, registering a decline of 60bp as compared to 10% in 1QFY2011 and in-line with our estimates of 9.5%. During 1QFY2012, ALL modified the method of amortisation of value of leasehold land from lower of 40 years and period of lease to the period of lease, thus resulting in reduction in other expenses by `9.4cr. Sequentially, operating margin declined by 389bp from 13.3%, largely due to the decline in volumes, which negatively affected the companys operating leverage. The operating margin on a yoy basis was supported mainly by price increases carried out by the company. Staff cost and other expenditure, as a percentage of sales, reported an increase of ~140bp and 100bp yoy, respectively, largely due to negative operating leverage. Raw-material cost as a percentage of sales, however, was lower than expected at 72.1% as against 73.9% in 1QFY2011.

July 20, 2011

1QFY12

Ashok Leyland | 1QFY2012 Result Update

Exhibit 6: EBITDA margin trend

(%) 80 70 60 50 40 30 20 10 0 1.2 10.5 11.5 12.9 10.0 11.3 7.5 13.3 9.4 72.6 70.2 71.3 73.2 73.9 73.6 73.2 72.1 72.1 EBITDA margin Raw material cost/sales

Exhibit 7: Net profit declines on high interest cost

(` cr) 350 300 250 200 150 100 50 0 0.9 1.9 5.6 5.8 5.2 3.5
Net profit (LHS) Net profit margin (RHS)

(%) 9 8 7 6 5 4 3 2 1 0

7.6 6.2

7.8

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

Source: Company, Angel Research

1QFY12

Source: Company, Angel Research

Net profit dips 29.7% yoy: ALL reported a 29.7% yoy decline in net profit to `86cr as against our estimate of `102cr on account of higher-than-expected interest and depreciation expenses. While interest cost increased by 69% yoy and 19% qoq, depreciation expense jumped by 38% yoy and 10% qoq. Interest cost increased mainly due to increased working capital requirements. Depreciation cost also moved up due to the additions to gross block in 4QFY2011.

July 20, 2011

1QFY12

Ashok Leyland | 1QFY2012 Result Update

Conference call Key highlights

Slowdown in southern market led to volume decline: ALLs volumes during the quarter were largely affected by the slowdown in demand from the southern region, where the company is the market leader and has ~50% market share. According to management, elections in southern states between AprilMay 2011 led to the demand slowdown. However, management remains optimistic and expects demand to pick up from 2HFY2012 and expects M&HCV demand to grow by 1012% in FY2012. Volume guidance: Management has indicated volume guidance of ~107,000 units for FY2012E. This includes ~95,000 of domestic vehicles and ~12,000 units for exports. Pantnagar plant update: During the quarter, ~5,900 units were manufactured at the Uttaranchal facility as against 7,000 units in 4QFY2011. For FY2012, ALL expects to produce 35,00037,000 units from the plant. With the increase in prices carried out in April and July 2011, the benefits available from the Pantnagar plant have increased to ~`47,000/vehicle from ~`42,000/vehicle in 4QFY2011. Engine business volumes continued to be affected due to reduced supplies to the telecom sector. The company sold ~3,400 engines in 1QFY2012. Revenue from the engines business stood at ~`64cr during the quarter. Around 500 defense kits were supplied during 1QFY2012. ALL has an order book to supply 2,0003,000 kits, which is to be executed over the rest of FY2012. The spares business posted `170cr in sales in 1QFY2012 vs. `135cr in 1QFY2011. ALL increased the prices of its vehicles by ~2% in April 2011 and further by `8,0009,000/vehicle in July 2011 to mitigate the impact of raw-material cost pressures. During the quarter, the company also increased product prices in the exports market by 67% and engine prices by 34%. During the quarter, staff cost increased due to increased payments towards ex-gratia bonus and gratuity. The companys debt levels including cash credits stand at ~`3,200cr as of June 30, 2011. The company plans to incur `1,100cr towards capital expenditure and investments in FY2012. ALL expects to begin commercial production of its LCV Dost by the end of July 2011. Initial installed capacity of the LCV is ~55,000 units.

July 20, 2011

Ashok Leyland | 1QFY2012 Result Update

Investment arguments
Top line to report a healthy CAGR of 1213% over FY201113E: We expect ALL to report healthy revenue CAGR of 1213%, driven by a 910% increase in volumes over FY201113E. Although the near-term M&HCV demand momentum has witnessed a slight slowdown due to macro headwinds in the form of high interest rates, we expect the M&HCV segment to grow at a healthy CAGR of 810% over FY201113E. Pantnagar plant to provide respite on the margin front to a certain extent: The new tax-free facility at Pantnagar is relatively more profitable, with profitability estimated to be ~25% higher than that of existing plants. Thus, EBITDA margins are expected to hold up at 1010.5% in FY2013E. ALL manufactured 12,800 vehicles (against guidance of 15,000) from Pantnagar facility in FY2011. The company plans to ramp it to 35,00037,000 vehicles in FY2012. Due to the tax benefit available at the Pantnagar plant, management expects savings of ~`47,000/vehicle for vehicles produced at the Pantnagar plant. We expect these cost savings to help mitigate the impact of raw-material cost pressures to a certain extent. JV contribution yet to crystallise: ALL has entered into an agreement to form a JV with Nissan Motor Company for the development, manufacture and distribution of LCV products. As ALL has a negligible presence in the LCV space, this partnership would be positive for ALL in the long run. The JV has already unveiled its first product Dost in March 2011, and it will hit the markets in 2QFY2012. Further, the companys JV with John Deere is expected to start commercial production from 2HFY2012.

Outlook and valuation

We expect ALL to report a healthy CAGR of 1213% in revenue, driven by a 910% increase in volumes over FY201113E. We broadly maintain our volume and earnings estimates for the company and estimate the company to report EPS of `5.6 in FY2013E. At `50, ALL is trading at attractive valuations of 8.8x FY2013E earnings. We maintain our Buy rating with a revised target price of `62, valuing the stock at 11x FY2013E earnings.

July 20, 2011

Ashok Leyland | 1QFY2012 Result Update

Exhibit 8: Key assumptions

FY2008 M&HCV passenger (units) M&HCV goods (units) LCV (units) Total volume (units) % yoy chg Domestic (units) Exports (units) Segment-wise revenue break-up (` cr) Vehicle Engines Spare parts Services and others Total revenue (` cr)
Source: Company, Angel Research

FY2009 19,981 33,071 1,379 54,431 (34.7) 47,619 6,812 5,520 442 800 23 6,784

FY2010 18,481 44,345 1,100 63,926 17.4 57,947 5,979 6,746 369 885 36 8,035

FY2011 25,226 68,007 873 94,106 47.2 83,800 10,306 10,901 356 1,062 23 12,342

FY2012E 26,992 73,108 917 101,016 7.3 88,958 12,058 12,287 403 1,189 25 13,905

FY2013E 30,231 80,418 981 111,630 10.5 98,366 13,264 13,985 436 1,308 28 15,757

22,260 60,224 823 83,307 0.3 76,022 7,285 8,102 235 791 13 9,142

Exhibit 9: Angel vs. consensus forecast

Angel estimates FY12E Top Line (` cr) EPS (`)
Source: Bloomberg, Angel Research

Consensus FY12E 5.0 FY13E 5.9

Variation (%) FY12E 2.6 (9.3) FY13E 2.5 (4.4)

FY13E 5.6

12,792 4.5

14,497 12,466 14,138

Exhibit 10: One-year forward P/E band

(`) 90 80 70 60 50 40 30 20 10 0 Share Price (`) 6x 9x 12x 15x

Exhibit 11: One-year forward P/E chart

(x) 35 30 25 20 15 10 5 0 One-yr forward P/E Five-yr average P/E

Feb-07

Jul-06

May-04

May-10

Dec-05

Aug-07

Mar-08

Dec-10

Jun-05

Apr-03

Apr-09

Jul-11

Feb-08

Feb-11

Sep-07

Jul-08

Sep-10

Nov-04

Nov-09

Oct-03

Oct-08

May-09

Aug-05

Dec-08

Jan-06

Jun-06

Apr-07

Nov-06

Source: Company, Bloomberg, Angel Research

Source: Company, Bloomberg, Angel Research

July 20, 2011

Oct-09

Apr-10

Jul-11

Ashok Leyland | 1QFY2012 Result Update

Exhibit 12: One-year forward EV/EBITDA band

(` cr) 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 EV (` cr) 4x 6x 8x 10x

Exhibit 13: One-year forward EV/EBITDA chart

(x) 18 16 14 12 10 8 6 4 2 0 One-yr forward EV/EBITDA Five-yr average EV/EBITDA

Feb-07

Feb-08

Feb-11

Jul-06

Jul-11

Sep-07

Sep-10

Jul-08

May-04

May-10

May-09

Dec-05

Dec-10

Aug-07

Mar-08

Aug-05

Dec-08

Jun-05

Apr-03

Apr-09

Jan-06

Jun-06

Apr-07

Nov-04

Nov-09

Oct-08

Nov-06

Oct-03

Source: Company, Bloomberg, Angel Research

Source: Company, Bloomberg, Angel Research

Exhibit 14: Automobile Recommendation summary

Company Ashok Leyland Bajaj Auto Hero Honda Maruti Suzuki M&M Tata Motors TVS Motor Reco. Buy Accumulate Neutral Accumulate Accumulate Accumulate Buy CMP (`) 50 1,425 1,761 1,164 705 969 51 Tgt. price (`) 62 1,512 1,314 804 1,100 62 Upside (%) 24.5 6.1 12.8 14.1 13.5 22.8 P/E (x) FY12E 11.0 14.7 17.0 13.1 15.1 6.1 11.5 FY13E 8.8 14.1 15.1 11.5 13.7 5.6 9.8 EV/EBITDA (x) FY12E 6.7 9.5 9.1 7.2 9.8 3.9 5.8 5.6 8.5 7.6 5.6 8.2 3.3 4.9 RoE (%) FY13E 17.3 43.5 59.5 16.0 23.9 32.1 21.0 14.9 51.3 62.4 16.7 25.1 41.9 20.7 FY11-13E EPS CAGR (%) 9.2 3.0 7.8 13.0 9.2 9.0 13.1 FY13E FY12E

Source: Company, Angel Research

July 20, 2011

Oct-09

Apr-10

Jul-11

Ashok Leyland | 1QFY2012 Result Update

Profit & Loss Statement

Y/E March (` cr) Gross sales Less: Excise duty Net Sales Total operating income % chg Total Expenditure Net Raw Materials Other Mfg costs Personnel Other EBITDA % chg (% of Net Sales) Depreciation& Amortisation EBIT % chg (% of Net Sales) Interest & other charges Other Income (% of PBT) PBT % chg Extraordinary Expense/(Inc.) Tax (% of PBT) PAT (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Adjusted EPS (`) % chg FY08 9,142 1,206 7,935 7,935 8.4 7,128 5,764 161 614 590 808 20.1 10.2 177 630 20.8 7.9 76 84 13.6 638 5.6 19 169 27.2 469 451 5.9 5.7 3.5 3.4 5.4 FY09 6,784 686 6,098 6,098 (23.1) 5,642 4,480 132 563 467 456 (43.5) 7.5 178 278 (56.0) 4.6 160 91 46.3 208 (67.3) 11 18 9.4 190 179 (60.3) 2.9 1.4 1.3 (60.3) FY10 8,035 628 7,407 7,407 21.5 6,648 5,212 135 667 634 760 66.6 10.3 204 555 100.1 7.5 102 91 18.1 545 161.3 40 121 24.0 424 384 114.6 5.2 3.2 2.9 114.6 FY11 12,342 976 11,366 11,366 53.4 10,148 8,113 235 970 831 1,218 60.3 10.7 267 950 71.1 8.4 189 41 5.1 802 47.2 2 171 21.3 631 630 64.2 5.5 4.7 4.7 64.2 FY12E 13,905 1,112 12,792 12,792 12.6 11,532 9,211 269 1,100 953 1,260 3.5 9.9 310 950 (0.0) 7.4 228 42 5.5 764 (4.7) 160 21.0 603 603 (4.2) 4.7 4.5 4.5 (4.2) FY13E 15,757 1,261 14,497 14,497 13.3 13,004 10,402 283 1,261 1,058 1,493 18.5 10.3 329 1,164 22.5 8.0 235 46 4.7 975 27.6 224 23.0 750 750 24.4 5.2 5.6 5.6 24.4

July 20, 2011

Ashok Leyland | 1QFY2012 Result Update

Balance Sheet
Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves& Surplus Shareholders Funds Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Mis. Exp. not written off Total Assets 2,942 1,417 1,526 529 610 2,875 451 824 1,600 2,272 603 22 3,290 4,939 1,540 3,399 998 264 3,166 88 790 2,288 2,141 1,025 10 5,695 6,019 1,769 4,250 561 326 4,152 519 973 2,660 2,961 1,191 5 6,334 6,692 2,058 4,634 358 1,230 4,367 180 794 3,394 3,528 839 4 7,065 7,753 2,368 5,385 388 1,368 4,615 103 921 3,591 3,941 673 4 7,818 8,237 2,698 5,539 412 1,421 5,248 157 1,087 4,003 4,265 982 4 8,359 133 2,016 2,149 888 254 3,290 133 3,341 3,474 1,958 263 5,695 133 3,536 3,669 2,280 385 6,334 133 3,830 3,963 2,658 444 7,065 133 3,983 4,116 3,258 444 7,818 133 4,422 4,556 3,358 444 8,359 FY08 FY09 FY10 FY11 FY12E FY13E

July 20, 2011

10

Ashok Leyland | 1QFY2012 Result Update

Cash Flow Statement

Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Less: Others Direct taxes paid Cash Flow from Operations (Inc.)/Dec. in Fixed Assets (Inc.)/Dec. in Investments (Inc.)/Dec. in loans and adv. Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances FY08 620 177 (670) (1,107) 169 1,066 (389) 189 84 1 247 226 (794) (320) 16 435 451 FY09 197 178 152 1,031 18 (522) 346 1 91 1,071 234 885 2,190 (359) 451 92 FY10 505 204 (297) (795) 121 1,086 (643) (63) 82 91 (532) 322 156 (605) (127) 427 92 519 FY11 800 267 (130) 176 171 591 (470) (904) (190) 41 (1,523) 378 233 (19) 592 (339) 519 180 FY12E 764 310 (346) (483) 160 1,050 (1,091) (138) (57) 42 (1,244) 600 309 (792) 117 (77) 180 103 FY13E 975 329 (258) (197) 224 1,019 (508) (53) 128 46 (387) 100 311 (989) (577) 55 103 157

(614) (2,466)

(729) (2,027)

July 20, 2011

11

Ashok Leyland | 1QFY2012 Result Update

Key Ratios
Y/E March Valuation Ratio (x)
P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Dupont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) Working capital cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage (EBIT / Interest) (0.1) (0.2) 8.3 0.5 3.5 1.7 0.4 1.9 5.5 0.3 1.0 5.0 0.4 1.4 4.2 0.4 1.2 5.0 2.9 53 21 82 15 1.5 76 40 114 33 1.4 73 49 110 40 1.8 62 35 90 21 1.8 64 37 93 18 1.8 64 37 95 18 20.9 22.4 22.3 6.2 6.5 6.4 9.2 12.4 10.7 14.2 17.0 16.5 12.8 14.8 14.9 14.4 0.0 17.3 7.9 0.7 3.1 18.0 7.3 0.0 18.0 4.6 0.9 1.7 7.1 10.2 0.3 6.3 7.5 0.8 1.7 9.7 3.7 0.4 12.2 8.4 0.8 2.3 14.9 6.0 0.4 18.0 7.4 0.8 2.1 12.5 6.1 0.4 14.9 8.0 0.8 2.2 13.5 5.5 0.4 16.8 3.4 3.4 4.9 1.5 16.0 1.3 1.3 2.8 1.0 15.9 2.9 2.9 4.4 1.5 17.6 4.7 4.7 6.7 2.0 20.0 4.5 4.5 6.9 2.0 21.1 5.6 5.6 8.1 2.0 24.4 14.7 10.3 3.1 3.0 0.7 8.0 2.0 37.1 18.0 3.1 2.0 1.2 18.1 1.4 17.3 11.3 2.8 3.0 1.0 10.6 1.3 10.5 7.4 2.5 4.0 0.6 6.5 1.1 11.0 7.3 2.4 4.0 0.6 6.7 1.1 8.8 6.1 2.0 1.5 0.5 5.6 1.0 FY08 FY09 FY10 FY11 FY12E FY13E

July 20, 2011

12

Ashok Leyland | 1QFY2012 Result Update

Research Team Tel: 022 3935 7800 DISCLAIMER

E-mail: research@angelbroking.com

Website: www.angelbroking.com

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Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Ashok Leyland No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

July 20, 2011

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