M&HCV volumes grow by 9%, LCVs by 25%
Ashok Leyland (AL) capped off another successful year with total sales of 1,97,366 units during FY19. The strong performance saw the company’s revenue grow to Rs. 29,055 crores, about 10 per cent higher than the previous year. The net profit rose to Rs. 1,983 crores, up by 15 per cent from Rs. 1,718 crores last year.
While AL’s total MHCV volumes, including exports for FY19, increased to 1,42,858 units, up by 9% from FY18, LCVs saw a much higher growth of 25%, with a total of 54,508 units sold during the year.
Though FY19 was a mixed year for the CV industry, especially with the second half of the year seeing a drastic slowdown, AL has been able to keep its market share intact at around 32 to 33.8 per cent across different segments.
Speaking about the company’s performance and readiness for the future, Mr. Dheeraj Hinduja, Chairman, Ashok Leyland, said: “Despite market challenges, we have had an exceptional year. I am pleased that we have been able to maintain our market share despite competitive pressures and be profitable in the face of rising costs of input materials and regulatory changes. We are well on our way to successfully introduce products for BS-VI. With a range of products planned across the spectrum in FY21, I am confident we will maintain the current growth momentum.”
Mr. Gopal Mahadevan, CFO, Ashok Leyland, added: “We have grown our market share in both trucks and buses in the fourth quarter and will continue to focus on the twin engines of growth and profitability. We continue to be net cash positive at the year end with over Rs. 700 crores of cash.”
According to Mr. Mahadevan, AL plans to launch a new modular platform in the MHCV segment next year, to be able to churn out products based on varying needs of customers. On the LCV side, the company is set to launch a completely new range in the 5- to 7-ton category in the coming year.
“LCV is an important business for us, both in domestic and export markets. In the export market, LCV is a good product to build our brand; so, in many of the new markets, we will foray into the LCV segment while expanding our M&HCV product range,” shared Mr. Mahadevan.
AL has planned for a capex of Rs. 2,000 crores over the next two years.
Gopal Mahadevan appointed Whole-time Director at AL
Ashok Leyland has appointed Mr. Gopal Mahadevan as a Whole-time Director for a period of five years from May 24, 2019, to May 23, 2024. Until taking up his new role, Mr. Mahadevan was serving as the President – Finance & CFO of Ashok Leyland since July 2013 and a member of the Board of several companies in the Hinduja Group.
Mr. Mahadevan is a Chartered Accountant and a Company Secretary with over 28 years’ experience in finance function across a spectrum of industries. With his extensive experience in manufacturing, internet services, financial services and project companies, he has been leading Ashok Leyland with efficacy.
He has numerous accolades to his credit, including those of the Best CFO (Capital Goods & Engineering Industry) by CNBC TV18 in 2012, Best CFO (Capital Goods & Engineering Industry) by the Institute of Chartered Accountants of India in 2011 and Best CFO by YES Bank Business Today in 2010 for CSR / Green Initiatives.