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“Ashok Leyland”
Strong Realization pushes the revenue- Net sales grew by 16.2% y-o-y
to Rs 1,884 crore against Rs 1,621 crore in Q1FY08 driven by 1.4% y-
o-y growth in volume and realization grew by 14% y-o-y.
Operating margins declined 430 bps- EBITDA margin drastically fell by
430 bps y-o-y and 530 bps q-o-q to 6.2% due to rise in input prices.
Operating profit excluding other income fell by 31.4% y-o-y and 60.1%
sequentially to Rs 117.2 crore against Rs 170.8 crore in Q1FY08.
Forex losses impacted PAT- Net Profit for the quarter stood at Rs 52.7
declining by 40.2% y-o-y. Net profit margin for the quarter was 2.8%,
down by 260 bps y-o-y. EPS for the quarter was Rs 0.39. However, if
we adjust the profit for the forex loss, Adjusted PAT would be Rs 84.5
crore, which lead to adjusted EPS of Rs 0.63 implying negative growth
of 4.7% y-o-y.
Strategies
Ashok Leyland cuts capex by Rs.13 bn, floats finance arm
Cont…
Ashok Leyland ties knot with BOB for ‘Finance Support’
The company had implemented 'GEMBA,' a programme to
encourage employees to come out with new innovations,
at its Ennore plant in October 2008.
It enable the company to save money and reduce the
inventory level to Rs 90 corer (Rs 900 million) from Rs
120 corers (Rs 1.2 billion) a year ago at this plant.
MARKETING
The company has been offering world class products to millions of
customers to 40 countries across the world.
Its main product line includes Trucks, Buses, Defense & Special
Vehicles and Engines for Indian and overseas market.
Ashok Leyland – is the market leader in Indian bus market, offering
CNG, Double Decker and Vestibule bus variants.
Ashok Leyland – is the market leader and pioneer for multi axle trucks
and tractor-trailers
Cont…
Ashok Leyland – enjoys market supremacy in Diesel
engines for Industrial, Gen-set and Marine applications.
Ashok Leyland - is the largest supplier of logistic vehicles
to the Indian army.
Ashok Leyland – offers 'Total Maintenance Solutions'
through maintenance contracts for its products, relieving
the customers of all maintenance worries.
Its Various Product Ranges
Strategies & Plans of Ashok Leyland
ü Ashok Leyland, the flagship of the Hinduja Group in India, has signed an
agreement for a joint venture with John Deere, for manufacturing and
marketing of construction equipment.
ü The 50:50 JV will bring together Ashok Leyland’s expertise in the automotive
sector, their marketing and distribution strength and John Deere’s technical
know-how and vast experience in the business of construction equipment.
Cont….
De-risking Strategy: The Company has put in place
a strong de-risking strategy in terms of pushing the
growth of Non Cyclical business.
Cont…
Increasing Global Footprint: The Company is now targeting new
strategic markets with increased thrust on the Asian & African
countries.
The company expects to double its export volumes in the next 3 years
due to increased penetration in these new markets.
Plans to meet the growing needs of the marketThe Company is
constantly reviewing their strategies. They are moving into higher
value-added jobs because it becomes very important to engage
workmen fully, and also their efficient utilization.
Cont..
Ashok Leyland to set up its NBFC for offering finance options
To enable quick and easy financing of their vehicles in their
bid to accelerate the sales in face of difficult credit
situation.
Ashok Leyland, Nissan to Form Partnership for LCV
Ashok Leyland and Nissan Motor Co., Ltd., signed a
Heads of Agreement (HoA) for the formation of three joint
venture companies supporting the Light Commercial
Vehicle (LCV) business which covers following areas:-
Cont…
Vehicle Manufacturing Company - a company with exclusive rights to
manufacture LCV products in India for both the partners.
Powertrain Manufacturing Company - Responsible for the manufacture and
assembly of engines and other drivetrain components to be fitted in the LCV
products and for exports.
Technology Development Company - Responsible for the development of
LCV products and related powertrains, destined for the Indian and identified
emerging markets.
In addition, the two partners are also studying cooperation in the area of sales
and distribution.
HUMAN RESOURCE
Cont….
Value to the Customer
The immediate R&D priorities are to pro-actively address safety and
environmental issues, harness and adopt technologies that provide value to
the customer in an atmosphere enabling creativity and innovation.
Test Tracks
But company R&D is not confined within walls. It extends to the test tracks
as well. Rigorous tests are carried out under stringent simulated conditions
that replicate the most treacherous landscapes.
Innovations
Ashok Leyland product development successes have come from a keen
sense of anticipation and attentiveness. The company initiated research into
alternative fuels well before legislative debate had even begun in the
country.
Cont….
Best practices
The new lines, apart from being state-of-the-art in terms of
machines and tools, also incorporate many global industry
best practices. The automated coolant management system
significantly reduces coolant consumption.
The Manufacturing Execution System (MES) allows for online
monitoring of all operational parameters such as breakdowns,
tool change and power consumption - both current status and
history.
Automation