Ashok Leyland reported a revenue of Rs. 7,608 crores in Q2 FY19, an increase of 25% over the Rs. 6,076 crores it had earned in the same period last year.
The company’s Q2 net profit increased by 37% to Rs. 460 crores as against Rs. 334 crores in the previous year, while its net profit for H1 FY19 increased by 86% to Rs. 830 crores as against Rs. 446 crores last year.
Mr. Vinod K. Dasari, Managing Director, Ashok Leyland, said: “In a challenging market scenario and aggressive competitive environment, we have registered a record financial performance. After bringing the world’s first BS4 engine with intelligent EGR, we continued to provide innovative world class products like the world’s first inline pump based BS4 engine.”
“We launched many digital technology-based solutions like “ServiceMandi” (market aggregator of highway service) and “eN-Dhan” card (leverages scale to reduce fuel costs) to help reduce the operating costs of our customers. Launched a year ago, “ServiceMandi” has completed 300,000 transactions and Rs. 150 crores in gross transaction value. “eN-Dhan”, launched last quarter, has reached 25,000 customers. This is in line with our brand philosophy of “Aapki Jeet. Hamari Jeet” he added.
Mr. Gopal Mahadevan, CFO, Ashok Leyland, added: “The growth in topline has helped in our financial performance. While input cost increases continue, we are attempting to neutralize this effect through efficient cost management. We continue to be zero debt as at the end of the quarter”.
Vinod Dasari to step down as AL MD & CEO
Ashok Leyland has announced the resignation of Mr. Vinod K. Dasari, its Managing Director and Chief Executive Officer (MD & CEO), effective March 31, 2019.
After a successful stint of almost 14 years with Ashok Leyland, first as Chief Operating Officer (COO) and then as CEO and MD, Mr. Dasari has decided to pursue his personal interests and seek new learning.
He will continue working in the current position until March 31, 2019, to ensure a smooth transition.
Respecting his personal decision, the company Board, at its meeting, accepted his resignation.
Mr. Dheeraj G. Hinduja, Chairman, observed on behalf of the Board: “I would like to place on record the contribution of Mr. Dasari in making Ashok Leyland a formidable force in the industry. He, along with his team, steered the company to ensure significant all-round performance. We wish Mr. Dasari the very best in his future endeavours”.
Mr. Vinod Dasari said: “My decision to leave is purely personal as I wish to pursue my personal interests and continue my learning journey. Fourteen years in this great company has been an incredible experience. There were many challenges along the way, but the continuous support of the Board and a committed team has helped the company achieve many laurels and set industry benchmarks. I consider it an honor and a privilege to have led this great organization over the last few years”.
To assist in business continuity and a seamless transition, the Board has requested Mr. Dheeraj Hinduja to step in as Executive Chairman (EC) with immediate effect. The Nominations and Remuneration Committee of the Board will meet shortly to decide the future course of action in identifying the next CEO and MD.