APRIL 22: Emerging out of a "prolonged recession" in the industry, automobile major and the Hinduja group's flagship company, Ashok Leyland (AL), has registered the highest ever turnover of Rs 2,602.68 crore in 1999-2000, registering a 27 per cent increase over the 1998-99 turnover of Rs 2,051.49 crore.The net profit of the company rose to Rs 78.48 crore in 1999-2000 as against Rs 20.36 crore achieved in the previous year, a jump of 285 per cent. The company has proposed a dividend of 35 per cent against 10 per cent in the previous year.Interest charges for the year were down at Rs 82.86 crore (Rs 94.63 crore) reflecting the working capital reduction achieved in 1998-99 and the tight control exercised during the year. Depreciation for the year stood at Rs 82.44 crore (Rs 76.19 crore).Earning per share for the year rose to Rs 6.60 from Rs 1.71 in the previous year and cash earnings per share posted a healthy growth of 66 per cent to Rs 13.53 (Rs 8.12).The company sold 37,859 vehicles during 1999-2000 as against 29,741 vehicles sold in the previous year, registering an increase of 27 per cent. With all-time high growth rate of 30.4 per cent, the medium duty vehicle sale was 35,350 numbers (27,109).Announcing the results, R Seshasayee, managing director, estimated that there was a growth of 10 to 15 per cent in the market demand for trucks. Currently, AL enjoys a market share of 34 per cent in medium duty vehicles as against 28 per cent in 1996-97. "We hope to increase our market share considerably in the next few years," he said.Dheeraj Hinduja, one of the directors of AL, replying to a question, said since the current market in India for cars was "overcrowded", AL did not wish to enter into the car segment in the "foreseeable future"' and AL's focus would be on manufacturing commercial vehicles only.Referring to the post-WTO compulsions and the time-frame recommended by SIAM for future emission norms, Seshasayee confirmed that the requisite product and technology restructuring was on course. The product rejigging plan involves volume usage of Iveco engines in medium and heavy duty vehicles. Details of a product upgradation plan involving compatible transmissions and axles, are being finalised.Seshasayee said ``even while protecting our profitability, we have marginally improved our market share in the passenger segment and have maintained out market share in the goods segment. However, our overall MCV market share was under pressure due to slower growth in the passenger segment where we have a dominant presence.''
