The Hindu : Business : Ashok Leyland sales cross $1 b

Online edition of India's National Newspaper
Friday, Apr 29, 2005

Business

Business

Ashok Leyland sales cross $1 b

Corporate Reporter

Actively pursuing prospects in several African and Asian countries

RIDING HIGH: The Managing Director of Ashok Leyland, R. Seshasayee (right), and the Executive Director (Finance), K. Sridharan, at a press conference in Chennai on Thursday. — Photo: BIJOY GHOSH

CHENNAI: Ashok Leyland has crossed the $1 billion mark in turnover for the year ended March 31, 2005 with exports accounting for more than 10 per cent. Record production of 54,519 vehicles, facilitated by capacity expansion helped the company achieve several milestones in its performance, according to R. Seshasayee, Managing Director of the company.

Addressing presspersons here on Thursday, he said total vehicle sales grew by 12.5 per cent to 54,740 numbers against 48,654 units in the previous year, with exports rising by 80.1 per cent to 6,812 vehicles accounting for 12.4 per cent of total vehicle sales.

Sales turnover went up by 22.5 per cent to Rs. 4,811.28 crores from Rs. 3,927.27 crores, while the net profit rose by 40 per cent to Rs. 271.40 crores from Rs. 193.60 crores.

The company has proposed a dividend of 100 per cent for 2004-05 against 75 per cent in the previous year.

A significant reduction in financial expenses to Rs. 2.80 crores from Rs. 20.79 crores helped the company to improve its gross profit to Rs. 473.81 crores from Rs. 392.43 crores.

Mr. Seshasayee cited the indigenous development of a customer-friendly BS III compliant `H' series engine as an important achievement.

The company stepped up funding for R&D to 1.9 per cent of sales revenue during 2004-05. Over 72 acres of newly acquired land, the R&D centre near Manali (Chennai) was undergoing significant expansion, he said.

Export effort

The company's export plans received a boost with breakthrough orders received from Philippines and Bangladesh for its CNG buses.

Following the order received from Sudan for its Stallion 4x4 army vehicles, the company was actively pursuing sales prospects in several African and Asian countries, Mr. Seshasayee said.

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