Ashok Leyland plans Rs 1000 Cr new investments in 2018-19
Commercial vehicle major Ashok Leyland is planning to invest Rs 1000 crore in 2018-19 mainly for developing innovative products, including electric vehicles. The Company expects to exceed the industry average growth rate of 10-12% in 2018-19. Vinod K Dasari, Managing Director, Ashok Leyland, said the proposed investment would also cover BS VI, Light Commercial Vehicle and others. The company will introduce 3 big products, apart from several variants in M&HCV space, LCV and buses. In 2017-18 the company had invested Rs 800 crore.
Ashok Leyland, flagship of the Hinduja Group, closed FY18 with revenues of Rs 26,248 crore and profit of Rs 1,563 crore. It posted 10.4% EBITDA margin for FY18. The company has also increased market share across all segments. The domestic MHCV industry volume grew by 12% for FY 2017-18 to 340,313 units (as per SIAM). Ashok Leyland volumes grew by 14% to 116,534 units in FY 201718 in the domestic market. Exports recorded a 36% growth in the fiscal and the aftermarket revenues also saw a healthy growth of 26%.
“FY 17-18 has been an extremely satisfactory year for us. Record domestic truck volumes, substantial growth in LCV, winning of the second Deming Award, continued growth in market share, success of our digital market place, and most importantly, the transformation which i-EGR brought to the Indian market and other achievements vindicate the capabilities of Ashok Leyland on various fronts,” Dasari said. Gopal Mahadevan, CFO, Ashok Leyland said, “We have posted record revenues with record profits and as at the end of the year, we are cash positive with nearly Rs 3000 crore surplus. Our focus on working capital and operational efficiency will continue. Our credit rating has been upgraded to ‘AA+’ after a span of 20 years.”
Meanwhile, the Board of Directors of the company has approved the Scheme of Amalgamation of Ashok Leyland Vehicles Limited, Ashley Powertrain Limited and Ashok Leyland Technologies Limited with Ashok Leyland Limited, subject to various approvals.