Ashok AGM to Reappoint Mr. Shom Hinduja as Director

At the upcoming Annual General Meeting (AGM), Ashok P. Hinduja, known as 'AP' among his associates, will see his son, Mr. Shom A. Hinduja, reappointed to the board of directors.

Shom Hinduja, who is currently the President of Alternative Energy and Sustainability at the Hinduja Group, has been instrumental in steering the group into the alternative energy sector and developing its sustainability strategy.

Before joining the group’s Mumbai office, Shom worked at KPMG’s Financial Due Diligence practice in New York. He holds a B.A. in Sustainable Development and an M.S. in Sustainability Management from Columbia University.

The Seventy-Fifth AGM of Ashok Leyland Limited will be held virtually on July 25, 2024, at 3:00 P.M. IST.

The annual meeting will cover several key decisions: 

• Approval of the audited financial statements for FY 2023-24 and 
• Confirmation of a ₹4.95 per share dividend.
• Directors include the reappointment of Mr. Shom Ashok Hinduja, Mr. Saugata Gupta for a second term, and new appointments of Dr. V Sumantran and Mr. Thomas Dauner. 
• The Executive Chairman, Mr. Dheeraj G Hinduja, and Whole-time Director, Mr. Gopal Mahadevan, will also be reappointed. 
• The remuneration of ₹7,00,000 for cost auditors Geeyes & Co. will be ratified. 
• Additionally, there will be approval for significant related party transactions with TVS Mobility Private Limited and Switch Mobility Automotive Limited, as well as transactions between subsidiaries.

Ashok Leyland Annual Report

In an extraordinary year marked by record-breaking achievements, Ashok Leyland has solidified its position as a leader in the commercial vehicle industry. The 2023-24 annual report unveils the company's all-time best performance across various product lines and business units, showcasing a remarkable growth trajectory.

Financial Metrics:

Ashok Leyland reported its highest-ever sales revenue of ₹38,367 Crore, a 6% increase over the previous year. The company's EBITDA soared to an unprecedented ₹4,607 Crore, reflecting a 57% rise due to exceptional operational efficiency and cost optimization.

Standalone Financial Results (Rs in Crores)

Consolidated Financial Results (` in Crores)

Business Verticals and Key Achievements:

The company operates across diverse business verticals, driving innovation and excellence in each sector. 

• Medium & Heavy Commercial Vehicles: A significant milestone with 116,069 units sold domestically, making Ashok Leyland the market leader in the bus segment.
• Light Commercial Vehicles: 66,633 units sold, with a modest market share gain, positioning the company as the #2 player in the 2-3.5T GVW segment.
• International Operations: Despite global challenges, exports increased by 5%, with 11,853 units sold.
• Power Solutions: Record sales of 32,374 engines, driven by the agricultural segment.
• Defence: Achieved all-time high revenues with continued market penetration.
• Aftermarket Business: Grew by 28%, demonstrating robust demand and customer satisfaction.
• Market Overview:
  • Commercial Vehicle Market: Almost flat with a 0.6% YoY increase in total industry volumes (TIV) after a strong 34.3% rise in FY23.
  • M&HCV Segment: Grew by 3.9% with M&HCV Buses growing by 38%.
  • LCV Segment: Decreased by 1.5%.
  • CV Exports: Decreased by 16.3%, following a 14.8% decrease last year.
• Company Performance:
  • M&HCV Domestic Sales: 116,069 units sold, a 1.6% growth over last year.
    • M&HCV Buses: 17,956 units, a 67% increase.
    • M&HCV Trucks: 98,113 units, including Defence vehicles.
    • M&HCV Trucks (excluding Defence): 96,995 units, a 5.6% decrease from FY23.
  • LCV Sales: 66,633 vehicles, flat compared to last year.
• Service and Dealer Network:
  • Improved to 2nd place in Sales & Service satisfaction.
  • Added 134 new outlets and 1,000+ bays.
  • 15% of FY24 volumes from new dealers.
  • 27 new dealerships and 118 new secondary outlets added.
• International Operations:
  • 5% growth to 11,853 units in FY24.
  • Challenges in Bangladesh, Nepal, and Sri Lanka due to geopolitical conflicts and forex issues.
  • GCC markets grew by 25%, contributing 50% of IO volumes.
  • Expanded presence in Africa with distributors in 8 new territories.
• Power Solutions Business:
  • Record sales of 32,374 engines, a 41.2% growth driven by the agricultural segment.
• Defence Business:
  • Supplied 1,116 units of completely built-up units (CBUs).

Management Analysis and Future Outlook:

Chairman Dheeraj G Hinduja highlights the company's strategic focus on innovation and customer-centric products. Over 30% of sales came from newly launched products, and significant strides were made in green mobility through Switch Mobility's electric buses and trucks. The company is also pioneering in alternative fuels, including CNG, LNG, methanol, and hydrogen, ensuring a future-ready portfolio of clean energy vehicles.

Key Strengths and Weaknesses:

Ashok Leyland's strengths lie in its diverse and innovative product range, strong market presence, and commitment to sustainability. However, the company remains vigilant of global economic fluctuations and geopolitical uncertainties that could impact its operations.

Projects Completed or Launched:

The report highlights the successful deployment of over 950 electric buses globally, with plans to expand into the European market. The launch of the Boss electric truck and the upcoming 55T electric tractor-trailer underscore the company's dedication to leading the EV sector.

• M&HCV Trucks: Ecomet Star 1915, 2820 G45 FES, N2825 EDPTO Transit Mixer.
• M&HCV Buses: Lynx Smart AC & Rear Air Suspension, Oyster Lite Chassis, Viking with H6 NA CNG, Lynx Max.
• LCV: Bada Dost CNG (2.8T), Bada Dost special anniversary edition (3.5T), Dost+ CNG.

Ashok Leyland's robust product portfolio, technological advancements, extensive network, and dedicated team position the company to capture future growth opportunities and move closer to its vision of becoming a global top 10 commercial vehicle player.

Read the Full annual Report and Notice Here

Ashok Leyland 

Ashok Leyland, a $4.5 billion company with a 75-year legacy, is a leading commercial vehicle manufacturer headquartered in Chennai, India. It is the second-largest commercial vehicle manufacturer in India and the fourth-largest bus manufacturer globally.

The company operates nine manufacturing plants worldwide and has a presence in over 50 countries. Known for innovation, Ashok Leyland has set industry benchmarks and holds prestigious certifications and awards.

Its extensive network includes 52,863 touch points, ensuring quick customer service. The company also plays a significant role in defense, providing vehicles for the Indian Army and global armed forces.