Shares in Ashok Leyland has surged 6% to Rs 56.50, also its record high on BSE, after the company said it has reported 48% year-on-year jump in total sales at 9,290 units in December 2014. Auto major had sold 6,275 units during the same month of 2013.
Sales of medium and heavy commercial vehicles soared 85% in December 2014 to 7,210 units as against 3,890 units sold during the same month of previous year, Ashok Leyland said in a statement.
Commercial vehicle manufacturer Ashok Leyland is planning to start manufacturing and marketing its electric and hybrid buses in India from next year, in line with the Prime Minister Narendra Modi's Make in India campaign.
Speaking to the reporters during the visit of Vince Cable MP, UK Secretary of State for Business, Innovation and Skills, to the company headquarters, Vinod Dasari, managing director of Ashok Leyland, said that Optare, the company's arm in UK, has been leading the electric and hybrid vehicle manufacturers there and its intention is to bring the Optare products to India.
Ashok Leyland has been adopting various strategies to cut the debt in its books, from reducing working capital to reducing manpower, selling off non-core assets, however, the best way to do is perhaps by increasing profits.
Vinod Dasari, managing director of the Hinduja Group company hopes that as the market turns around, the company would make some profits.
Commercial vehicle maker Ashok Leyland, the flagship company of the Hinduja Group, has raised Rs.210 crore from sale of one of its residential properties at Chennai. The sale was done as part of its strategy to sell non-core assets. While the company did not disclose the details of the properties sold, industry sources said that this was a 1-acre property in the posh Boat Club area, one of the most expensive residential localities in Chennai.
Ashok Leyland has reduced its net loss to Rs.48 crore for the quarter ended June 30, 2014 when compared with a net loss of Rs.142 crore in thea year-ago period, on the back of better operating profit. Net sales of the company were up five per cent at Rs.2,435 crore when compared with Rs.2,313 crore in Q1 of previous fiscal. Profit from operations before other income, finance costs and exceptional income stood at Rs.13 crore as against a loss of Rs.72 crore in the year-ago period.
Mumbai: After declining for 33 consecutive months, sales of medium and heavy-duty trucks picked up in June, as an improvement in the mining sector and a pick-up in manufacturing led to some revival in demand for commercial vehicles.
With the exception of Tata Motors Ltd, the market leader in the commercial vehicles, sales at most firms, including Ashok Leyland Ltd, Eicher Motors Ltd, Volvo Eicher Commercial Vehicles Ltd and Mahindra Trucks and Buses Ltd, saw a spike.
Ashok Leyland is planning to raise about Rs 700 crore through a qualified institutional placement (QIP). In an announcement to BSE on Thursday, the company said its fund-raising committee had passed a resolution authorising the QIP be opened on June 26. A preliminary placement document in this regard had been filed with the regulator.
Since 2011, the auto sector has been reeling from its worst recession ever. Sales have plummeted and profits have slumped for most companies. But at Ashok Leyland, which saw its 2013-14 revenue drop over 20 per cent and profit fall 93 per cent, the slowdown is playing out differently.
The company's stock rose to a 52-week high of Rs 32.30 on BSE last month after the announcement of the fourth quarter results, even as the 143 per cent quarter-on-quarter jump in profit to Rs 363 crore came largely from sale of non-core assets. It sold its stake in IndusInd Bank and Hinduja Leyland Finance, among others.
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