Tag: Ashok Leyland

Dividend Stock: This commercial vehicle manufacturer will pay ₹4.95 per share to shareholders

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Ashok Leyland has declared an interim dividend of ₹4.95 per share for the financial year ending 2023-24, the company said in an exchange filing.

The record date for determining the members eligible to receive the said dividend has been fixed on Wednesday, April 3. The said interim dividend would be paid on or before April 23, 2024.

Shares of Ashok Leyland will likely trade ex-dividend a day or two days before the record date. When a company goes ex-dividend on a particular date, its stock does not carry the value of the next dividend payment. An ex-dividend date also dictates which shareholders are eligible to receive the dividend payment.

Ashok Leyland had declared a final dividend of ₹2.6 in July last year, following a ₹1 payout in July 2022.

On the earnings front, Ashok Leyland’s net profit jumped 60.5% to ₹580 crore in Q3FY24 on a year-on-year basis, beating Street estimates riding on strong demand for its products both in the MHCV and LCV segments.

The Indian flagship company of the Hinduja Group recorded revenues of ₹9,273 crores in the third quarter of the current financial year, registering a growth of 2.7%.

Ashok Leyland reported EBITDA of ₹1,114 crore (12.0%) in Q3FY24, registering double-digit percentage EBITDA in all three quarters of the fiscal year.

In an interaction with CNBC-TV18, Ashok Leyland’s MD and CEO Shenu Agarwal said the company expects the financial year 2024 to be a “record-breaking” year, driven by the government’s focus on infrastructure and a shift away from the industry’s traditional cyclicality.

Agarwal had expressed his optimism about the interim budget and the government’s infrastructure push. “The last 3-4 years have been fantastic for the industry, and the government’s infra focus has been a major contributor,” he added.

Ashok Leyland shares have tumbled over 10% so far this year, while it has risen 24% in the last one year.

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Ashok Leyland’s all-woman Hosur team sets new quality & efficiency standards in just a year

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In their early 20s, N Annapoorani and Pooja Ashok are still relatively new at Ashok Leyland’s plant in Hosur, near the TN-Karnataka border. Both women were raised by single mothers who continue to work day jobs. It was only a year ago when both operators found themselves on what would go on to become the company’s first-ever women-only production line.

While they are entrusted with the task of assembling truck engines, both say their manufacturing jobs have moved beyond being just another day at the office.

“There’s so much respect for my uniform at home,” says Annapoorani, reflecting on how much life has changed since working at the plant as we meet her on the factory floor, “Moreover, when I see one of these trucks on the road, I tell my mother that I made the engine that powers these trucks — that’s a matter of pride for her.” Her colleague, Pooja, chimes in. “This has always been seen as a men-oriented job,” she says, “When women came in, we became equal (to men), we keep challenging men that we can also do anything in this world.”

Also read: Ashok Leyland invests ₹25 crore to acquire 49.9% stake in TVS Trucks

It has been a year since Ashok Leyland’s 130-employee-strong, all-women team at the company’s Hosur plant began assembling truck engines. In this period, the company’s young and dynamic team has gone from strength to strength, clocking a whopping 20,000 engines assembled under one roof, even as it continues to break stereotypes.

While Leyland’s Hosur experiment could well be written off as tokenism, the company says starting a production line of only women has made for some interesting learnings.

“Close to 20,000 engines can be made from these lines,” says Ganesh Mani, President and COO, “What was very surprising to us is that in less than five months, this line was able to surpass other lines in terms of production, productivity and quality level.”

Today, Leyland says it wants more gender diversity across all its production lines. The company is aiming to maintain a 60-40 gender mix in favour of women at its MHCV plant in Pantnagar. In Hosur, a large number of its workforce at the all-women line are local talent from surrounding neighbourhoods.

However, there are also those like Arti Kumar and Rajani Rathour who moved to town from Uttarakhand, with their families. The plant, they say, has become their new home multiple challenges notwithstanding.

“I am the only executive who brings my child who is a one-and-a-half years old, to day care,” says Arti, who is a maintenance executive at the line, “There are times I am unable to meet her all day because that’s the rush we encounter — we want numbers.” Then, there are challenges like acceptance back home. “When I joined an industrial field, my family wasn’t accepting that I work here,” says her colleague, Rajani, who is a quality executive on the line, “After some time, when I began feeling good here, they supported me.”

Leyland’s Hosur plant has a maximum capacity of 2 lakh trucks, a tenth of which have engines assembled by a team comprising only women. Chances are that percentage could get a lot higher soon.

Also read: Ashok Leyland reaches 3 million production milestone at Pantnagar plant

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Ashok Leyland invests ₹25 crore to acquire 49.9% stake in TVS Trucks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Commercial vehicle maker Ashok Leyland Ltd on Friday (February 23) said it has invested in TVS Trucks and Buses Private Ltd (TVS Trucks) by purchasing equity shares worth ₹24.95 crore.

“…we wish to inform you that the company has invested a sum of Rs 24.95 crore in TVS Trucks and Buses Private Limited (TVS Trucks) by way of equity shares,” according to a stock exchange filing.

“Consequent to the allotment by the Board of Directors of TVS Trucks today, the company’s shareholding in TVS Trucks is 49.9%, by virtue of which, TVS Trucks has become an associate company,” the company said.

TVS Trucks, incorporated on June 13, 2023, is in the automotive dealership business and has a presence in India. TVS Trucks is a joint venture between Ashok Leyland and TVS Mobility Private Ltd, with TVS Mobility holding 50.1% and the company holding the balance shareholding of 49.9%.

Ashok Leyland’s net profit jumped 60.5% to ₹580 crore in Q3 of FY24 on a year-on-year (YoY) basis, beating Street estimates, riding on strong demand for its products both in the MHCV and LCV segments. It reported a net profit of ₹357 crore in Q3 of FY23. A CNBC-TV18 poll estimated net profit at ₹541 crore.

The company recorded revenue of ₹9,273 crore in the third quarter of the current financial year, compared to ₹9,030 crore in Q3FY23, registering a growth of 2.7%, but missed the CNBC-TV18 poll estimate of ₹9,392.

Ashok Leyland reported EBITDA of ₹1,114 crore (12%) in Q3 of FY24 compared to ₹797 crore (8.8%) in Q3 of FY23, registering double-digit percentage EBITDA in all three quarters of the fiscal year, the company said in its exchange filing.

Shares of Ashok Leyland Ltd ended at ₹174, up by ₹0.95, or 0.55% on the BSE.

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Ashok Leyland reaches 3 million production milestone at Pantnagar plant

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Hinduja Group flagship company Ashok Leyland on Thursday said it has reached a significant milestone of having rolled out three million units out of its factory in Uttarakhand. The heavy commercial vehicle maker said it was moving steadfastly on its vision to become one of the top 10 Commercial Vehicle (CV) manufacturers globally.

”We are proud to have achieved this significant milestone. Ashok Leyland has always been ahead of the curve and leading the CV industry in product technology and innovation,” Ashok Leyland MD and CEO Shenu Agarwal said in a company statement. ”

The rollout of our three millionth vehicle is a testament to our well-established reputation for manufacturing highly reliable products and delivering top-notch customer service,” he added.

”The achievement at the company’s state-of-the-art manufacturing facility in Pantnagar, Uttarakhand highlights Ashok Leyland’s dedication to innovation, technological advancement and strong customer relationships,” he further said.

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The company, in a statement, said it has embarked on a comprehensive network expansion to bolster its presence and reach nationwide. This expansion reaffirms the commitment to deliver unparalleled service and support to customers. Globally, Ashok Leyland has expanded its presence to 48 countries.

”The rollout of the 3 millionth vehicle from our factory validates the joint efforts made by our numerous teams including our supplier and technology partners,” company Chief Operating Officer Ganesh Mani said.

As Ashok Leyland completes 75 years, it is committed to driving a sustainable and eco-friendly transportation ecosystem and moving steadfastly on its vision of becoming one of the top 10 commercial vehicle makers, globally, the company said in the statement.

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Q3 results: Ashok Leyland net profit jumps 60.5% to ₹580 crore, EBITDA at 12.0%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Ashok Leyland net profit jumped 60.5% to ₹580 crore in Q3FY24 on a year-on-year (YoY) basis, beating street estimates riding on strong demand for its products both in the MHCV and LCV segments. It reported a net profit of ₹357 crore in Q3FY23. A CNBC-TV18 poll estimated net profit at ₹541 crore.

The Indian flagship of the Hinduja Group recorded revenues of ₹9,273 crores in the third quarter of the current financial year, compared to ₹9,030 crores in Q3FY23, registering a growth of 2.7%, but a miss compared to the CNBC-TV18 poll estimate of ₹9,392.

#3QWithCNBCTV18 | Ashok Leyland reports its #Q3 earnings👇

-Net Profit up 60.5% at ₹580 cr vs ₹357 cr (YoY) pic.twitter.com/ZbVAG3Yk5y

— CNBC-TV18 (@CNBCTV18Live) February 5, 2024

Ashok Leyland reported EBITDA of ₹1,114 Cr (12.0%) in Q3FY24 compared to ₹797 Cr (8.8%) in Q3FY23, registering double-digit percentage EBITDA in all three quarters of the fiscal year, the company said in its exchange filing.

Commenting on the Q3FY24 results, Shenu Agarwal, Managing Director and CEO, Ashok Leyland, added, “We have been able to achieve significant improvement in our net profits. The current quarter saw the confluence of good volumes, better price realisation, and higher cost savings, thus helping us achieve better profitability. Other businesses such as after-market, Power Solutions and Defence also continue to strongly contribute to our top line and margins. On the back of new differentiated products, a deeper focus on cost optimisation, and with continued discipline on pricing, we shall relentlessly pursue improvement in profitability. We remain confident and optimistic about
the growth of the CV industry in the medium and long term as macroeconomic factors continue to be favorable.”

Ashok Leyland also added that it garnered orders for more than 3,800 buses from State Transport Undertakings. The bus market continues to grow significantly and is expected to bolster overall industry volumes. In the recently held Bharat Mobility Global Expo at New Delhi, the company commenced delivery of its first Electric 55T Tractor—Trailer, and its first 14T Boss Electric Truck.

Ashok Leyland also achieved a historic high commercial vehicle (CV) volume of 1,38,416 units in the first nine months of the fiscal year.

Dheeraj Hinduja, Executive Chairman said, “The present favourable market conditions are expected to hold in the foreseeable future. The steady progress we are making in sales volume and profitability is backed by products that deliver superior performance and customer value coupled with robust customer engagement across segments. A suite of new products in conventional and alternate propulsion technologies is slated for
introduction progressively to consolidate our gains in the domestic market and facilitate our forays in overseas markets.”

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Ashok Leyland expects FY24 to be a record breaking year for the truck maker

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian commercial vehicle giant Ashok Leyland expects a ‘record-breaking’ FY24, driven by the government’s focus on infrastructure and a shift away from the industry’s traditional cyclicality, according to MD & CEO Shenu Agarwal.

In an exclusive interview with CNBC-TV18 at the Bharat Mobility Global Expo, Agarwal expressed optimism about the interim budget and the government’s infrastructure push. “The last 3-4 years have been fantastic for the industry, and the government’s infra focus has been a major contributor,” he said.

Agarwal highlighted a significant shift in the commercial vehicle (CV) industry, indicating a move away from its traditional cyclicity. He said, “The cyclicity of the CV industry that has happened in the last 20 years will not happen again.” This change is attributed to India’s rapid growth and the swift implementation of policy reforms, signalling a new era for the sector.

Recent sales dip a temporary setback

Despite a recent dip in sales, with a 7% decline in January to 15,939 units compared to 17,200 units year-on-year, Agarwal remains unfazed. The sales downturn, particularly in the Medium and Heavy Commercial Vehicle segment, is seen as a temporary hiccup rather than a long-term concern.

“There is no overall demand slowdown,” Agarwal said, attributing the decline to a high base in the last fiscal year and dismissing the potential long-term impact of macroeconomic events.

FAME & PLI – a potential merger?

Ashok Leyland is also keenly focused on the electric vehicle (EV) market, with the Indian government’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme playing a pivotal role. Agarwal suggests that merging the FAME scheme with the Production Linked Incentive (PLI) schemes could be beneficial.

He revealed ongoing discussions about the potential extension of FAME 3 to trucks, expressing enthusiasm for the government’s serious consideration of electric trucks.

Ashok Leyland is also actively expanding its EV offerings. “We’ve been working on EVs for a decade,” Agarwal revealed. “Our bus EV technology is mature, and we’re the only one with an electric double-decker bus. We’re focusing on extending our EV product range.”

The company will soon release its FY25 outlook. On the upcoming full budget, Agarwal urged the government to maintain its current approach. “Consistency is key,” he advised, “rather than adding new elements. Focusing on India’s growth, its industries, and core sector investments will benefit the entire nation.”

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Ashok Leyland to supply 1,225 buses to Karnataka State Transport for ₹522 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Ashok Leyland on Thursday, January 18 said it has bagged an order for 1,225 buses from the Karnataka State Transport. The order is said to be worth ₹522 crore, the company said in an exchange filing.

Three Karnataka State Transport bodies – KSRTC, NWKRTC and KKRTC will receive buses from Ashok Leyland as part of the order.

The company will deliver 210-inch wheel base Viking fully-built buses as part of the project.

These vehicles are AIS 153 certified and BSVI OBD II diesel fueled for Mofussil operation, which features the advanced iGen6 BSVI Technology with a robust 147 kW H Series engine, it said. “The engine is expected to enhance safety, comfort and reduce the overall cost of ownership,” the company said.

The order is expected to to be executed by April 2024.

Last month, the commercial vehicle manufacturer unveiled its new AL H6 Diesel — CEV Stage V engine in Bengaluru. It also showcased around half a dozen products at the 12th International construction equipment and technology trade fair, EXCON 2023, in Bengaluru.

Ashok Leyland shares were trading in the green on Thursday, after three days, up 1.31% at Rs 173.80 apiece, around 1.35pm on January 18. The stock has gained 17.81% in the past year.

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Ashok Leyland shares gain 3% after unveiling AL H6 engine at EXCON 2023

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Leading commercial vehicle manufacturer Ashok Leyland shares gained nearly 3% on Wednesday after the company unveiled the AL H6 Diesel – CEV Stage V engine at EXCON 2023 in Bengaluru.

The company unveiled its new diesel engine along with other innovative products showcasing its versatility for various applications.

In a filing to the stock exchanges, Ashok Leyland said that its H6 Engines maintain their dominance as a preferred choice for original equipment manufacturers in both track and wheel harvester applications.

The H6 engines are known for their lowest total cost of ownership (TCO), Ashok Leyland informed the bourses.

Apart from the new diesel engine, the company also showcased half a dozen products at the 12th International construction equipment and technology trade fair, EXCON 2023, in Bengaluru. The fair is scheduled from December 12 to December 16.

The products showcased by the company included H4 Engine – Diesel engine, H6 Engine – Hydrogen (H2 ICE), 40 kVA Genset – CPCB4+, A6 Engine – Diesel, EATS –compact and efficient exhaust after Treatment system, and DEF Tank –compact and proven diesel exhaust fluid tank.

Additionally, the Indian flagship of the Hinduja Group, said that it is looking to expand product lines and enhance its presence in the fast-increasing engine market.

“As the need for enhanced fuel efficiency rises and the integration of alternative fuels with diesel engines continues to grow, we present a comprehensive array of state-of-the-art engine solutions. Our engines can be customized for various applications, catering to the evolving demands of the industry, ” Shenu Agarwal, MD and CEO of Ashok Leyland said.

At 12.05 PM, shares of Ashok Leyland were trading 1.45% higher at ₹ 174.7 apiece on the BSE.

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One of India’s largest bus maker cheers the $390 million fund for electric buses

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India plans to roll out 50,000 electric buses for public transport by 2027 with joint funding from the United States. Shenu Agarwal, Managing Director and CEO of Ashok Leyland believes this is a “great step in the direction of adoption of electric buses in public transport.”

India currently has 12,000 electric buses plying on the roads.

According to a report by Bloomberg, this initiative, announced at a COP28 side event, involves a $390 million fund designed to secure loans for manufacturers expanding electric bus production. The funding arrangement includes $150 million contributed by the US government and philanthropic organisations, and $240 million from the Indian government.

Agarwal said this fund is being established jointly by India and the US to implement a payment security mechanism (PSM) for all government contracts.

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Agarwal also discussed the plan to raise product prices. He said there is need for a price adjustment given that the rise in input costs hasn’t been entirely reflected in market prices. The company will soon announce its decision.

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He does not expect the mandatory installation of cabin air conditioners in trucks starting October 2025 to increase costs by around 1-1.5%.

The industry is welcoming the initiative to introduce these changes as it will help in terms of efficiency and productivity of the vehicles that we have on the road, he noted.

For the entire interview, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com’s blog

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Stocks to Watch: HAL, Ashok Leyland, Aurobindo Pharma, Muthoot Finance and more

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow