LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » Companies News

Ashok Leyland will launch New Product under Project 'Phoenix' in 2020: Gopal Mahadevan, CFO

 The LCV Business which was acquired by Ashok Leyland became a 100 per cent owned business of Ashok Leyland then we decided to merge them because it turned operationally efficient for us. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Ashok Leyland will launch New Product under Project 'Phoenix' in 2020: Gopal Mahadevan, CFO
LCV business is highly profitable today and is growing very well and it has a market share is about 18 per cent. Image source: Zee Business
Written By: ZeeBiz WebTeam
Updated: Mon, May 27, 2019
02:50 pm
ZeeBiz WebDesk
RELATED NEWS
Ashok Leyland share price: Sharekhan revises price target to Rs 151 Ashok Leyland share price: Sharekhan revises price target to Rs 151
IRCTC, Ashok Leyland share price outlook decoded by Bonanza Portfolio IRCTC, Ashok Leyland share price outlook decoded by Bonanza Portfolio
Ashok Leyland, Hero MotoCorp, Tata Motors, Maruti Suzuki sales: Momentum continues in Auto sector, says Sharekhan Ashok Leyland, Hero MotoCorp, Tata Motors, Maruti Suzuki sales: Momentum continues in Auto sector, says Sharekhan
Ashok Leyland share price: Sharekhan revises price target of Rs 151 on Ashok Leyland Ashok Leyland share price: Sharekhan revises price target of Rs 151 on Ashok Leyland
Ashok Leyland, Hero MotoCorp, and Maruti Suzuki are top picks by Sharekhan in Auto Sector  Ashok Leyland, Hero MotoCorp, and Maruti Suzuki are top picks by Sharekhan in Auto Sector

LCV business is highly profitable today and is growing very well and it has a market share is about 18 per cent, says Gopal Mahadevan, Chief Financial Officer (CFO), Ashok Leyland. During a chat with Swati Khandelwal, Zee Business, Mahadevan said we are also investing in LCV business and will be launching a new product under the project name Phoenix by 2020.Edited Excerpts:

Ashok Leyland’s number of the quarter is representing the merger of three subsidiaries. Update us on the performance and what are the highlights?
A: I think the merger has been very good. LCV business was merged because it has three different separate subsidies. The LCV Business which was acquired by Ashok Leyland became a 100 per cent owned business of Ashok Leyland then we decided to merge them because it turned operationally efficient for us.

We are able to take cost out of the operations very quickly out of it. So, LCV business is highly profitable today and is growing very well and it has a market share is about 18 per cent. So, we are very happy with the performance of the LCV business. In addition, we are also investing a lot in the LCV business and will be launching a new product under the project name ‘Phoenix’. The project will be launched in 2020, where our vehicles will weigh in the bracket of 5 to 7.5 tonnes. It will help us to gain volumes and shares. Overall, I think that the industry has grown 15 per cent, am taking about MHCV industry, in last year.

But, we have seen some amount of de-growth in Q3 and Q4, but it was expected because that was a base effect of the Q3 and Q4 of FY18, which was significantly high. And, we also had axel norms also. As we move forward, and the election results are out what we are expecting is a much stable environment due to the presence of a good atmosphere for demand revival. I expect that Q2 and Q3 are going to see some good demand and then we will have a smooth transition into BSVI. 

Tell us about the impact of the raw material cost on margin and provide an outlook?
Yes, I think that the raw material cost in FY2018-19 was pretty high, especially in the case of steel. The prices were growing month-on-month despite the full year impact. We also had a challenge in the industry in terms of the pricing because discounting is prevalent in this industry, unfortunately. So, the twin issue of lower pricing because of discounting and high input prices did put pressure on operating margins but we were able to take cost out of the system. It helped us maintain a margin for the full year at 11.1 per cent. So, results were satisfying as far as we are concerned. 

Update us on the current demand scenario in commercial vehicle segment and post elections do you expect any near-term defence orders from the government?
I hope, the orders are good more importantly, we have won a lot of tenders and Ashok Leyland has assured its capabilities in supplying defence orders. The number of tenders and orders that we have won are quite significant. What we want now is that these tenders convert into orders and hopefully, that will happen in the next couple of years and the ministry of defence will start placing orders.

As far as other aspects are concerned, then as I mentioned you that once the government is back we would want to step up in infrastructure spend and expecting that road construction will also continue and it will have a positive impact on sectors like cement and steel. Possibly, the real estate will start growing, if all this happens. Especially, if the core sectors start growing than it is going to be very important for the commercial vehicle industry to grow. Let’s hope and wait and watch that it happens. 

Capex guidance for FY20?
Well I think in FY20, we can have about Rs1000-1500 crore of CapEx coming in because it is necessary. As we have an electric vehicle, BSVI and modular vehicle program in our kitty. Then we have a normal CapEx that has to come because we have to augment capacity as well. Plus, we have some investments in some of the subsidiaries, so we expect the number to be about anywhere between Rs1000-1500 crore.  

You are entering in partnership with Tesla. Please clarify have u given any proposal?
I don’t think that we had any interactions with Tesla and I would only want to say that there has been no interaction with Tesla at all on any kind of potential partnership. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Ashok Leyland
RELATED NEWS
Ashok Leyland share price: Sharekhan revises price target to Rs 151 Ashok Leyland share price: Sharekhan revises price target to Rs 151
IRCTC, Ashok Leyland share price outlook decoded by Bonanza Portfolio IRCTC, Ashok Leyland share price outlook decoded by Bonanza Portfolio
Ashok Leyland, Hero MotoCorp, Tata Motors, Maruti Suzuki sales: Momentum continues in Auto sector, says Sharekhan Ashok Leyland, Hero MotoCorp, Tata Motors, Maruti Suzuki sales: Momentum continues in Auto sector, says Sharekhan
Ashok Leyland share price: Sharekhan revises price target of Rs 151 on Ashok Leyland Ashok Leyland share price: Sharekhan revises price target of Rs 151 on Ashok Leyland
Ashok Leyland, Hero MotoCorp, and Maruti Suzuki are top picks by Sharekhan in Auto Sector  Ashok Leyland, Hero MotoCorp, and Maruti Suzuki are top picks by Sharekhan in Auto Sector

LATEST NEWS

Yes Bank and SBI: Technical Analysis for Traders and Investors

Manchester United quarterly revenue rises on broadcasting boost

7th Pay Commission latest news today: Big Holi gift for Central government employees! Center issues this notification on 7th CPC leave rule

EaseMyTrip IPO: Public issue opening on Monday! Listing gain, important dates, price band to other details; all that you must know before bid

Post Office Schemes: Good news for savings account holders! Withdrawal limit hiked from Rs 5,000 to Rs 20,000 at these branches

Aadhaar card-based driving licence service: Check step by step guide to renew your driving licence online without going to RTO

CBSE Class 10, Class 12 date sheet revised—check new time table, instructions here

TMC Candidates List 2021 - Names of 291 candidates announced for West Bengal Elections; See Complete List Here

Gold Price Today 04-03-2021: EXCLUSIVE! Yellow metal may slide below Rs 44,000; check this money making idea

Elijah Wood, Cate Blanchett set to reunite as ''Lord of the Rings'' turns 20

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved