Registering a 39 per cent increase in turnover at Rs.18,882 crore as against Rs.13,562 crore turnover the year before, Ashok Leyland has hinted at some very interesting products it is looking to introduce later this year. Expecting the positive growth momentum to continue, the company is looking at 15 per cent growth in FY2016-17 according to Vinod K. Dasari, MD, Ashok Leyland. Stating that an increase in vehicle cost to meet the BS IV emission norms, which will be rolled out pan-India in 2017, will likely impact growth. Dasari stressed upon the stupendous profit growth of 115 per cent (with Rs.722 crore profit after tax) that his company has achieved. Profit after tax last year was Rs. 335 crore. About introducing some very interesting products, Dasari touched upon the 40-seat Sunshine school bus that was displayed at the Auto Expo 2016. Having sold 98,809 vehicles during FY2015-16, Dasari expressed that Ashok Leyland is poised to seize the opportunity the market presents in the immediate future. He opined, his company would continue to invest in new products, technologies as well as enhance the domestic and global network in pursuit of profitable growth. The international thrust would see the company setting up an assembly plant in Bangladesh.
Ashok Leyland has bagged orders for 3600 buses from various State Transport Undertakings. The company is looking at executing the orders promptly in this fiscal. Increasing its market share in India’s bus market from 33.2 per cent in the last quarter of the last fiscal to 35.9 per cent in the first quarter of current fiscal, the company, according to Vinod K. Dasari, MD, Ashok Leyland Ltd., will continue to expand its network, launch new products, and introduce customer centric initiatives which would help it to maintain its lead. Drawing attention to the overall M&HCV volumes of Ashok Leyland increasing by 18.6 per cent over the industry growth of 14.5 per cent, Dasari mentioned that they are continuing to maintain growth in the domestic M&HCV market and believe that the industry would post 15 per cent to 20 per cent growth in the current fiscal.
A flag-off ceremony was held at the Mumbai Port Trust on June 28, 2015 on the occasion of shipment of vehicles and spare parts by Ashok Leyland Ltd. to Zimbabwe. Ashok Leyland Ltd. has been awarded the contract for supply of 633 vehicles and spare parts to the Ministry of Tourism and Hospitality Industry, Government of Zimbabwe. Under the contract, Ashok Leyland Ltd. will also provide training to the buyer’s technical staff in operation and maintenance of the products.
The above contract is being financed by Exim Bank under its Buyer’s Credit [BC] under National Export Insurance Account [NEIA] to the extent of USD 49.92 mn extended to Ministry of Finance and Economic Development, Government of Zimbabwe. These vehicles will be utilized by the Ministry for Tourism and Hospitality activities, especially for promotion of domestic tourism, and supporting international tourism, disaster management, anti-poaching activities, peace missions and other related purposes.
The flag off ceremony was attended by Exim Bank’s Chairman and Managing Director, Mr. Yaduvendra Mathur, Deputy Managing Director, Mr. David Rasquinha and General Manager, Harsha Bangari in the presence of officials from Ashok Leyland Ltd., and authorities from Shipping Line, Port authorities’ etc. During the ceremony, Exim Bank’s Chairman and Managing Director, Mr. Yaduvendra Mathur mentioned that Exim Bank’s BC-NEIA programme is an unique financing mechanism that provides a safe mode of non-recourse financing option to Indian exporters and serves as an effective market entry tool to traditional as well as new markets in developing countries. The Programme is aimed to serve India’s national interest of export promotion and furthering the nation’s economic objectives. The current supply of vehicles to Zimbabwe will enhance the bilateral ties between India and Zimbabwe.
Ashok Leyland rolled-out the 100,000th DOST. They also unveiled Dost and its RUV’s (ready to use vehicles) such as Ambulance, Refrigerated container, Steel Container, Service-at-Site Van etc.
In less than 4 years, DOST has become the 2nd largest brand in its category; making it one of the fastest growing brands. It is today the largest volume brand in the Ashok Leyland portfolio, with customers, not just in India, but across countries like Sri Lanka, Nepal, Bangladesh, Myanmar, South Africa, Kenya, Tanzania, Mozambique, Malawi, Male, and UAE.
Ashok Leyland has recorded sales revenues of Rs 13,562 crore as against Rs 9,943 crore in the previous financial year. EBITDA stood at Rs.1,027 crore during FY 2014-15, against Rs.117 crore in the previous fiscal. Profit Before Tax (PBT) and exceptional items stood at Rs.341.26 crore during FY 2014-15, against a loss of Rs.596.88 Crores in the previous fiscal. Net profit was at Rs.334.80 crores, against a net profit of Rs.29.38 crores in the previous fiscal. During the year, the commercial vehicle major generated surplus cash of around Rs.2000 crore, aided by positive accruals, qualified institutional placement (QIP), sale of non-core assets, and reduction in working capital, all of which resulted reduction in debt. Said Vinod K. Dasari, MD, “Our efforts towards the transforming the company in terms of pruning costs, rationalizing overheads, reducing working capital, and at the same time investing smartly in new products and network are paying off. The industry has turned the corner and so have we. I am confident that coming years will see us build on this momentum.” Ashok Leyland’s share in the M&HCV segment has shown improvement with domestic sales of 66,442 vehicles. This has been claimed to have resulted from an enhanced product range, which includes the 3718, Boss, Captain and JanBus. Expansion of network even during the slow down has been attributed as one of the reasons for the good performance. downturn. Also contributing to the good performance were factors like a renewed focus on customer and network profitability, annual maintenance contracts, insurance and extended warranty. The Board of Directors have recommended a dividend of 45 per cent.