Hinduja Group flagship Ashok Leyland has lined up a series of new product launches during the current financial year which would also witness a total capital expenditure of Rs 1,000 crore, a top company official said.
The company had spent about Rs 600 crore as capital expenditure during the last financial year.
Declaring the annual performance, company Managing Director, Vinod K Dasari said, the profits for the fourth quarter ending March 31, 2018 was at Rs 667.38 crore as compared to Rs 476.16 crore registered during same period of previous year.
"It has been a fantastic year for us (Ashok Leyland). Our total volume increased by 14 per cent to 1,16,534 units for FY 2017-18 and exports recorded a 36 per cent growth in the financial year. Our stock performance surpassed our competitors (last financial year)," he told reporters.
The company's net income rose to Rs 8,830.22 crore during the fourth quarter as against Rs 7,133.43 crore registered during same period of last year.
For the year ending March 31, 2018, the company posted a consolidated net profit of Rs 1,815.81 crore, upby 12.65 per cent from Rs 1,611.91 crore during the fourth quarter of last fiscal.
To a query, Dasari said the company has earmarked Rs 1,000 crore as capital expenditure for the current financial year.
"We are expecting similar growth like last (financial) year. We will launch several new products this year, there will also be investments in light commercial vehicle (segment). Capital expenditure will also be used for setting up new plant in Andhra Pradesh," he said.
Elaborating about new product launches, he said the company would launch high horsepower tippers with Neptune engine.
"It (Tippers) will be 320HP that will be for both domestic and overseas market. We will also launch high horsepower tractors with Neptune engine. We also have new product coming in light commercial vehicles. There is a lot more (new products) coming in buses", he said.
To a query, Dasari said the Rs 1,000 crore capital expenditure would be used for overseas operations also which include expanding the facility at Ras al-Khaimah plant in the Middle East.
On whether the company would raise funds to meet the capital requirements, he replied in the negative saying, "it will be mostly through internal accruals. We have enough cash to support the funds".
"We have posted record revenues with record profits and at the end of the year, we are cash positive with nearly Rs 3,000 crore surplus. Our focus on working capital and operational efficiency will continue," company CFO Gopal Mahadevan said.
On exports, Dasari said sales from overseas contribution was 15 per cent to the total revenue and it was better than last year.
"The growth is satisfactory. But, we have a target to reach," he said.
The company's board has recommended a dividend of Rs 2.43 per share.
The board of directors also approved the scheme of amalgamation of Ashok Leyland Vehicles, Ashley Powertrain and Ashok Leyland Technologies with Ashok Leyland, subject to various approvals as applicable.
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