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Ashok Leyland plans to spend about ₹2,000 crore over the next couple of years as the country’s second largest medium and heavy commercial vehicles manufacturer gears up for future product programmes and growth in the light commercial vehicles business.
“This year, our capex would be close to ₹1,000 crore, and for the next year too, we are looking at a similar range,” Dheeraj Hinduja, Chairman, Ashok Leyland, said while discussing the company’s annual performance for FY19.
The proposed capex will primarily go towards the new LCV and modular programmes, as well as BS-VI related plans.
The company is bringing a modular platform concept for its medium and heavy commercial vehicles range to make products based on the needs of the customers. This platform will be launched next year.
The company will also launch its new range of LCVs — expected to be in the 5-7 tonne range — next year.
Responding to media reports on a possible tie-up with Tesla, Hinduja said the company was not looking at any collaboration for cars.
“The electric vehicle sector is new and the technology is evolving. So we are happy to have discussions with people who have been in this sector and have better knowledge,” he said.
Fourth-quarter results
The company has reported a 12 per cent fall in profit after tax (including exceptional items) at ₹653 crore for the fourth quarter ended March 31, compared with ₹743 crore in the year-ago period.
Revenue (excluding excise duty/GST) stood at ₹8,846 crore ( ₹8,780 crore), on the back of a marginal increase in its total sales at 59,521 units (58,734 units).
Gopal Mahadevan, CFO, Ashok Leyland, attributed the drop in Q4 profit to poor sales, huge discounts and increase in raw material prices.
Despite the challenges, the company managed to maintain double-digit EBITDA at 11.1 per cent (12.8 per cent).
For the full-year ended March 31, 2019, the company’s net profit (including exceptional items) grew 15 per cent at ₹1,983 crore (₹1,718 crore).
Revenue (excluding excise duty/GST) saw an increase of 10 per cent at ₹29,055 crore (₹26,356 crore), on the back of a 13 per cent increase in total sales at 1,97,366 units.
EBITDA stood at 10.8 per cent as against 11.2 per cent last fiscal.
The board has recommended a dividend of ₹3.10 per share for 2018-19.
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