Near-term Outlook Disappointing; but Up-Cycle to Begin in mid-FY21E Ashok Leyland (ALL) has delivered a disappointing operating performance in 3QFY20 with its EBIDTA margin coming in at 5.6% (down 466bps and 21bps QoQ) vs. our estimate of 6.5% due to lower realisation, sharp double-digit decline in volume and all-time high discounts. Total volume declined by 29% YoY (+8% QoQ) to 31,205 units. Its Revenue, EBIDTA and PAT declined by 37% YoY (+2% QoQ), 65% YoY (-2% QoQ) and 92% YoY (-65% QoQ) to Rs40.2bn, Rs2.3bn and Rs293mn vs. our estimates of Rs44.9bn, Rs2.9bn and Rs1.1bn, respectively. Higher interest outgo and higher tax rate impacted net profit. Though we expect similar slowdown to continue...