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Expect higher industrial car volumes in remaining a part of FY21: Ashok Leyland

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NEW DELHI: Hinduja Group flagship agency Ashok Leyland expects industrial car (CV) gross sales to choose up within the remaining months of the present fiscal yr after witnessing large decline in volumes within the first half owing to the coronavirus pandemic, a senior firm official stated on Monday. The CV main, which reported a consolidated web lack of Rs 96.23 crore within the second quarter ended September, has saved its capex plans intact for the present fiscal.

“In the first quarter, we came across a one of its kind situation, everything was shut. As things have started to open up, we have seen things becoming better. Looking at the situation, all indications point out that things will move up in the third and the fourth quarter,” Ashok Leyland CFO Gopal Mahadevan informed .

The CV trade noticed gross sales falling 75 per cent in April-September interval of this fiscal as in contrast with the year-ago interval, and with consultants saying that complete dip in volumes this yr could be within the vary of 30 per cent solely, it implies that the trade should develop in the remainder of the yr, Mahadevan added.

“So, we will have growth in the third and fourth quarter as minus 75 per cent will become minus 30 per cent by the end of the year. And if that happens, the company is well positioned to reap benefits, having already launched modular truck platform AVTR and Bada Dost LCV earlier this year,” Mahadevan stated.

He stated authorities help when it comes to insurance policies would additionally assist to rev up the sector.

“I believe the federal government ought to proceed investing in infrastructure. It also needs to deliver scrappage coverage. If all of this occurs, it is going to be a giant plus for the industrial car trade,” Mahadevan stated.

On capex technique, he stated, “We will continue to invest in enhancing our capabilities, but this year our overall capex will not go beyond Rs 750 crore.”

Till September, the corporate has already invested Rs 290 crore out of the entire kitty of Rs 750 crore, Mahadevan stated.

When requested if the corporate would make investments the remainder of the earmarked capital within the remaining a part of the fiscal, he stated, “We may, we may not. Guidance for the fiscal, however, remains unchanged at Rs 750 crore for now.”

The firm’s consolidated income from operations throughout July-September quarter declined to Rs 3,852.84 crore as towards Rs 5,096.13 crore within the year-ago interval.

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