1QFY19: New axle norms a temporary disruption In1QFY19, Ashok Leyland (AL) reported an operationally in-line performance with net sales of INR 62.5bn (+48% YoY,-29%QoQ) and EBITDA margin of 10.4% (+320bps YoY,-140bps QoQ). Gross margin surprised positively owing to strong growth in after-market and exports segment. Uncertainty and extent of impact on volume growth from the recent notification on maximum safe axle weight' (easing and formalising of higher carriage of weight per axle) was the major point of discussion during the post results earnings call. The management opined that the lead time required to comply with the new norms, in terms of finalising...