ASHOK LEYLAND LTD
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BSE Code:
500477
NSE Code:
ASHOKLEY
Business Profile
Business Profile
Ashok Leyland (ASHOKLEY), the flagship company of the Hinduja group is a manufacturer of trucks, buses, special application vehicles and engines. Incorporated in 1948 as Ashok Motors, it entered into an agreement with Leyland Motors, UK in 1955 and changed its name to Ashok Leyland. R.J. Shahaney is the chairman and R. Seshasayee is the managing director of the company.
The company offers unique bus models such as CNG, double decker and vestibule buses; trucks like multi axle, tractor-trailers, hydraulic models, .etc.; diesel engines for industrial, genset and marine applications in collaboration with technology leaders; and logistic vehicles to the Indian army. The company has six plants having a total installed capacity of 77,000 commercial vehicles and 24,000 tons ferrous castings. Two manufacturing units (engines and gearboxes) costing Rs 2,500 million are being set up.
Associate companies include Automotive Coaches & Components (tipper body manufacturer), Lanka Ashok Leyland (chassis builder), Ennore Foundries (automotive jobbing foundry), IRIZAR-TVS (bus body builder) and Ashok Leyland Project Services (project development). It has recently acquired Defiance Testing and Engineering Services, Detroit, Michigan, USA for USD 17 million.
The company has a 50:50 JV with the Alteams group, Finland to manufacture high pressure die casting (HPDC) aluminum products; a JV with Siemens VDO Automotive AG, Germany for infotronics products and services. Ashok Leyland and Nissan Motor Co. have an agreement to form three JV companies for the light commercial vehicle business. Shriram Transport Finance has joined the company for brand-neutral freight intermediation services. The company has a wide dealer network and has a Rs 2.3 billion order for the Indian army. In exports, it has a deal in Sri Lanka for supplies worth Rs 3 billion.
The registered and corporate offices are at 19, Rajaji Salai, Chennai 600001.
Financials
The company announced a substantial drop in standalone net profit for the quarter ended December 2008. During the quarter, the profit of the company declined 84.31% to Rs 188.68 million from Rs 1,202.17 million in the same quarter previous year. Net sales declined 44.40% to Rs 10,008 million, while total income for the quarter fell 45.14% to Rs 10,114.32 million, when compared with the prior year period. It reported earnings of Rs 0.14 a share during the quarter, registering 84.62% decline over previous year period.
Recent Developments
02-MAR-09
The company tied up with Bank of Baroda (BoB) to extend finance to the company`s end-customers and its dealers` inventory.
29-NOV-08
The company announced that it had delayed the proposed Rs 7-8 billion investment at its facility in Pantnagar and its Chennai plant owing to slowdown in the domestic market.