India Coffee House Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : India Coffee House

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Mohan Marette who wrote (4653)	6/18/1999 10:23:00 AM
From: Mohan Marette	Read Replies (2) of 12475

Company Profile - Ashok Leyland ashokleyland.com Equity Watch walletwatch.com Profile Ashok Leyland (AL) is the second largest medium/heavy commercial vehicle (M/HCV) manufacturer (32% market share) in the country. Over 70% of its sales are from the South. It has only a marginal presence in the light commercial vehicle (LCV) segment (1%). The company is the market leader in the bus segment (55%). AL has a technology tie-up with Iveco (a global leader in commercial vehicles). Iveco is also one of its promoters. During FY98, AL's sales fell by 27% over FY97, in terms of volumes. The company's performance was adversely affected by the slowdown in the automobile sector, which affected the CV segment in particular. The 33% decline in CV demand hit the company's profitability, with profit after tax falling by 85%. The company was forced to cut production by 30% over FY97. However, exports in terms of volume improved by 41% over the previous year. The slowdown in the CV segment is showing no signs of any letup and is expected to persist well into FY99. The company is likely to witness negative growth in sales as well as profitability until at least 1HFY99. During the year, AL has gained some market share at TELCO's expense mainly on account of its strength in the bus segment. The company's buses are mostly preferred by the state transport corporations. The company's has now shifted focus from the Iveco vehicle, in favour of Leyland and HINO capacities, as the former has not performed satisfactorily. AL is upgrading its technology and further expanding its capacities. The capacity is forecast to be expanded to 76,000 by FY2000. The company plans to invest Rs 2 bn annually upto FY2000 to meet the cost of the above project.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next