Ashok Leyland lines up Rs 600-750 cr CapEx for FY 2023-24

Hinduja Group flagship Ashok Leyland has earmarked around Rs 600-750 crore as capital expenditure for the current financial year, a top official said here on Tuesday.The city-based heavy commercial vehicle major, earlier in the day, reported an over five-fold jump in consolidated net profit at Rs 802.71 crore for the fourth quarter ended March 31, 2023 riding on robust sales.The company had posted a consolidated net profit at Rs 157.85 crore for the same quarter previous fiscal.Briefing reporters, Companys Managing Director and CEO Shenu Agarwal said, the capital expenditure for the year would be Rs 600-Rs 750 crore.

Hinduja Group flagship Ashok Leyland has earmarked around Rs 600-750 crore as capital expenditure for the current financial year, a top official said here on Tuesday.

The city-based heavy commercial vehicle major, earlier in the day, reported an over five-fold jump in consolidated net profit at Rs 802.71 crore for the fourth quarter ended March 31, 2023 riding on robust sales.

The company had posted a consolidated net profit at Rs 157.85 crore for the same quarter previous fiscal.

Briefing reporters, Company's Managing Director and CEO Shenu Agarwal said, ''the capital expenditure for the year would be Rs 600-Rs 750 crore. this would be for augmenting existing capacities (at manufacturing facilities) and some 'debottlenecking' would be there.'' Agarwal said the company reported highest revenue during the full year ending March 31, 2023 at Rs 36,144 crore as against Rs 21,688 crore recorded year ago.

''This is the highest ever revenue reported by Ashok Leyland..'' Agarwal said.

Cash generated during the quarter ending March 31, 2023 was at Rs 2,287 crore and net cash surplus was Rs 243 crore as against net debt of Rs 720 crore for the same period of last year.

To a query on exports, Agarwal said the company planned to replicate its last year performance by expanding presence overseas. ''We were able to maintain our growth in exports. We also realize there is a huge venture available for us (for expansion)..Last year we entered 10 new markets and had 11 distributors....we are planning to do like that this year.'' Agarwal said the company would focus on markets like Gulf Cooperation Council (GCC) countries, Africa, among others.

On the electric vehicle business, company Chief Financial Officer Gopal Mahadevan said they have planned to introduce e-Dost the electric-version of its popular light commercial vehicle 'Dost' by third or fourth quarter of the year.

Regarding the financial performance, he said, ''we have been able to achieve growth in market share, across geographies and across product segments, along with significant improvement in our profitability.'' ''While we shall continue to pursue better realizations even as we expand market share, our resolute focus shall remain on bringing deeper efficiency and cost improvement.'' ''We have generated close to Rs 2,287 crore of cash this quarter owing to better profits and focused management of working capital, which gives us ability to further accelerate our investment in future products and technologies,'' he added.

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