Ashok Leyland dips on disappointing May sales

The Stallion has been the most successful product from Ashok Leyland's defence arm so far The Stallion has been the most successful product from Ashok Leyland’s defence arm so far Ashok Leyland was trading 4% lower at Rs 105, falling 6.2% from intra-day high on the BSE, after the commerical vehicles major reported single digit growth in total sales for the month of May 2016.

“Total sales of the company rose by 6% in May 2016 to 9,875 units from 9,290 units in a year ago month,” Ashok Leyland said in a press release. The growth rate is lowest since July 2014, when the company recorded 10% year on year decline in total sales.

The company’s medium & heavy commercial vehicles (M&HCV) sales grew by 8% in May to 7,469 units from 6,888 units, a year ago. Light commercial vehicle (LCV) sales remained unchanged at 2,406 units as against 2,402 units, a year ago, it added.

On cumulative basis, during April to May 2016, the company's total sales rose by 13% to 20,057 units from 17,725 units during the same period last year.

The stock hit an intra-day high of Rs 112 on the BSE, before the announcement of May sales figures. The trading volumes on the counter nearly doubled with a combined 25.03 million shares changed hands on the BSE and NSE.