May 15, 2021

Anticipate higher industrial car volumes in remaining a part of FY21: Ashok Leyland

NEW DELHI: Hinduja Group flagship agency Ashok Leyland expects industrial car (CV) gross sales to choose up within the remaining months of the present fiscal yr after witnessing big decline in volumes within the first half owing to the coronavirus pandemic, a senior firm official stated on Monday. The CV main, which reported a consolidated internet lack of Rs 96.23 crore within the second quarter ended September, has saved its capex plans intact for the present fiscal.

“Within the first quarter, we got here throughout a one in all its form scenario, the whole lot was shut. As issues have began to open up, we have now seen issues changing into higher. Trying on the scenario, all indications level out that issues will transfer up within the third and the fourth quarter,” Ashok Leyland CFO Gopal Mahadevan advised .

The CV trade noticed gross sales falling 75 per cent in April-September interval of this fiscal as in contrast with the year-ago interval, and with specialists saying that complete dip in volumes this yr could be within the vary of 30 per cent solely, it implies that the trade should develop in the remainder of the yr, Mahadevan added.

“So, we can have development within the third and fourth quarter as minus 75 per cent will turn into minus 30 per cent by the tip of the yr. And if that occurs, the corporate is properly positioned to reap advantages, having already launched modular truck platform AVTR and Bada Dost LCV earlier this yr,” Mahadevan stated.

He stated authorities assist by way of insurance policies would additionally assist to rev up the sector.

“I feel the federal government ought to proceed investing in infrastructure. It must also convey scrappage coverage. If all of this occurs, it is going to be an enormous plus for the industrial car trade,” Mahadevan stated.

On capex technique, he stated, “We’ll proceed to spend money on enhancing our capabilities, however this yr our general capex is not going to transcend Rs 750 crore.”

Until September, the corporate has already invested Rs 290 crore out of the overall kitty of Rs 750 crore, Mahadevan stated.

When requested if the corporate would make investments the remainder of the earmarked capital within the remaining a part of the fiscal, he stated, “We might, we might not. Steering for the fiscal, nevertheless, stays unchanged at Rs 750 crore for now.”

The corporate’s consolidated income from operations throughout July-September quarter declined to Rs 3,852.84 crore as towards Rs 5,096.13 crore within the year-ago interval.