Ashok Leyland To Utilise Its Surplus Cash On Capacity Expansion, EVs
The company ended financial year 2018-19 with a net positive cash flow of over Rs 700 crore.
Ashok Leyland Ltd. plans to invest its excess cash on capacity expansion and electric vehicle projects.
“We are debottlenecking capacity for future growth as we have not had any significant capital expenditure in the last four-five years,” its Chief Financial Officer Gopal Mahadevan told BloombergQuint. “We would look at participating in some of the electric vehicle tenders as we are possibly the only player in the market to have all three variants—flash, long range and swap.”
The Chennai-based company ended financial year 2018-19 with a net positive cash flow of over Rs 700 crore.
The automobile maker will deploy funds to advance its light-commercial vehicles project Phoenix to offer 5 to 7.5-tonne capacity trucks that will be launched in year 2020, he said.
Key Highlights: (YoY)
- Sales rose 1 percent to Rs 8,846 crore.
- Ebitda fell 12 percent to Rs 986 crore.
- Profit declined 12 percent to Rs 653 crore,
- Margin at 11.1 percent versus 12.8 percent.
Shares of Ashok Leyland declined 4.5 percent intraday to Rs 89.55 apiece compared to a 0.4 percent gain in the Nifty.
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