Middle East important focus area for Ashok Leyland
Vinod K. Dasari, Managaing Director, Ashok Leyland alongwith channel partner Western Auto, handed over 150 buses to customers on Wednesday, 18th February 2015. MD, Dasari says Middle East is an important area of focus for the company. Saudi Arabia, especially, is a big market.
The commercial vehicle manufacturer has always believed in customer profitability and availability of proper service and parts as an important aspect of business viability, customer satisfaction and long-term service commitment. This facility helps Ashok Leyland maintain its leadership position alongwith Western Auto. 3 more workshops will be inaugurated in 2015, and the investment reflects commitment and seriousness about this market.
At the end of January 2015, Ashok Leyland reported M&HCV sales of 8005 units, over 5530 units sold in Jan 2014, equating to 45 pct sales increase. LCV sales stood at 2634 units over 2317 units sold in 2014 Jan, equating to 14 pct sales increase. Total sales stood at 10639 units over 7847 units in Jan 2014, equating to healthy 36 pct sales growth.
For the FY2014-15 Q3, Ashok Leyland reported 72 pct growth in revenue at Rs 3361.00 crores, against Rs 1953.21 crores for Oct-Dec 2013. Net profit stood at Rs 32.09 crores for Q3, up from net loss of Rs 167.21 crores for Q3 in the last FY. YTD operating profit at the end of Q3 stood at Rs. 588.62 crores as against an operating loss of Rs. 17.38 crores for first nine months in FY2013-14.
Dasari said alongwith export orders from Sri Lanka and Africa, Ashok Leyland is big on newer markets, network expansion and opening small assembly centres in overseas markets, similar to Ras Al Khaimah (UAE). the company is confident that the domestic market is indeed coming back, and the economic lull may just be behind us. Expecting growth momentum to continue, the company should end the FY on a good note. Total commercial vehicle industry volume has grown 10 pct YoY. Q3 sales grew owing to more stable and optimistic business environment, improved profitability for fleet owners, and pre-buying ahead of withdrawal of excise duty concession.