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Ashok Leyland Ltd.

BSE: 500477 Sector: Auto
NSE: ASHOKLEY ISIN Code: INE208A01029
BSE 00:00 | 30 Sep 152.65 3.30
(2.21%)
OPEN

148.85

HIGH

153.30

LOW

146.25

NSE 00:00 | 30 Sep 152.65 3.30
(2.21%)
OPEN

149.50

HIGH

153.30

LOW

146.30

OPEN 148.85
PREVIOUS CLOSE 149.35
VOLUME 876434
52-Week high 169.40
52-Week low 93.20
P/E 102.45
Mkt Cap.(Rs cr) 44,810
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 148.85
CLOSE 149.35
VOLUME 876434
52-Week high 169.40
52-Week low 93.20
P/E 102.45
Mkt Cap.(Rs cr) 44,810
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ashok Leyland Ltd. (ASHOKLEY) - Chairman Speech

Company chairman speech

Dear Shareholder

I hope you and your family are keeping safe and well. I am quitepleased to advise that we have achieved creditable market and financial performance during2021-22. The success is gratifying especially because your Company could overcome thestrong headwinds the industry faced with collective will and determination. While theintensity of the global pandemic abated to a significant extent the second wave impactedus in the first quarter of the last fiscal. While the market began improving from thesecond quarter dampeners surfaced in the form of continued shortage of semiconductorsunanticipated and unprecedented increases in commodity prices and severe logisticsbottlenecks.

In this backdrop your Company posted a gradual increase in marketshare month over month from September 2021 in the Medium and Heavy Commercial Vehicle(MHCV) range reaching a 30 percent share in March 2022. We have also improved our marketshare in the Light Commercial Vehicle (LCV) on a year-on-year basis. It is commendablethat our International Operations registered a 38 percent growth in sales volume over thelast fiscal year. In addition the businesses of Power Solutions Defence products andAftermarket have posted notable gains.

All things considered for FY22 our Profit after Tax wasRs542 Croresagainst a Loss after Tax ofRs314 Crores last year.

I would like to take this opportunity to gratefully acknowledge theimmense contribution of each of our employee and every other stakeholder for rising tothe occasion contributing to Ashok Leyland reasserting its position in the industry inthese challenging times.

I believe a few other developments would be of interest to you thatwould promote the long-term sustainability of our business. Products and technology beingour core competence we have developed a robust product plan that has the flexibility toadapt to dynamic market requirements. The AVTR range in the MHCV segment has gainedwidespread customer acceptance based on proven performance and reliability. The launch ofthe CNG vehicles in the ICV range has added further strength to our portfolio.

Following on the success of Dost the Bada Dost model with its best-in-class power payload and comfort is rapidly gaining ground in the LCV segment. It hasbagged the Apollo award for "CV of the Year" and "Pickup of the Year"ET Now Global Retail Excellence Award and CII Design Excellence Award. The LCV portfoliowas also extended to include a Reefer version in Partner model and an ambulance in Mitr.

With our commitment to clean emission vehicles we have developed aroadmap covering CNG LNG hydrogen fuel cell and battery electric vehicles to cater todifferent applications and customer needs. Action is already on to extend CNG and LNGacross the full range of trucks and buses. We are pursuing a proactive approach to developtechnologies in the areas of Safety Digital and Green energy. In Safety we are workingon enabling various levels of Advanced Drive Assistance Systems and plan to roll out theseproducts over the next 3 years. We are closely engaged with key technology partners andcustomers to enable the development and deployment of these features. In parallel we areworking on developing an ecosystem to enable the customers to deploy the green energyvehicles as well. In Digital we will continue to work on solutions such as prognosticscustomized AMC. As I had mentioned last year we have structured our Electric Vehicles inbus and LCV segments as a separate business entity called Switch Mobility through whichsignificant progress has been made in India U.K. and Spain. Switch is activelyparticipating in several EV related market opportunities in India and abroad. Veryrecently contemporary 12m buses for the Indian and European markets were showcased.

Our International Operations market expansion strategy is built on ourstrong presence in SAARC and the GCC and making significant new inroads into the Africanmarkets where 15 new distributors have been appointed last year and product models FalconSuper Gazl and Phoenix RHD were launched.

In the Defence sector we now have a full range of offerings whichconsists of combat support armoured light specialist and tracked vehicles. The PowerSolutions Business is well prepared for the upcoming CPCB 4 emission shift. The previousfiscal saw good growth in the Power Gen and BS CEV 4 industrial segments. We are nowlooking to expand the business in the non-automotive segment globally.

Moving forward our assessment is that the volatility in environment inthe near term will be high. The Russia-Ukraine war has triggered massive spikes in crudeoil food and commodity prices. Globally inflation has become a major concern. Supplychain disruptions including chip shortages are expected to continue. On the positiveside the Indian economy is expected to post a GDP growth rate of over 7 percent. TheGovernment of India is committed to boosting infrastructure spend which should augur wellfor your Company. This along with the announcement of the vehicle scrappage policy isfavourable for our industry. In my view carefully balancing the long- term sustainablegrowth aspirations with short term needs is more important now than ever before. Thisrequires flexibility and quick adaptability to ever changing needs which we haveintegrated well in our strategies. As always we will continue to invest in products andpeople regardless of short-term business fluctuations while being constantly vigilant oncosts and returns. Diversity and Inclusion along with customer orientation will becornerstones of our strategy implementation. We will continue on our digitaltransformation journey which has become an all-encompassing business facet and a growingimperative to respond to dynamic consumer expectations.

We have taken an early lead in adopting the Environment Social andGovernance (ESG) targets in our plans and operations. Ten focus areas covering variousaspects of ESG will be pursued as relevant to our industry and in line with UN SDG goals.Our sustainability initiatives focus on net zero carbon footprint and positive waterbalance. Our CSR programme "Road to School" covers today 969 schools with about100000 children benefitting from this initiative. To recall this initiative is focusingon improving the quality of education health nutrition social and civic awarenessamongst children from Government schools. Our target is to reach 1 million students assoon as possible.

In conclusion I wish to assure our shareholders that your Company iscommitted to grow its business sustainably based on operational excellence and strategicforesight. We have always converted every crisis into an opportunity and the last year wasno different. We truly owe it to our people who spare no pains to achieve the goals. I amconfident that with the actions seeded and the team we have we will continue our growthtrajectory towards our Vision and identified Missions.

I look forward to keeping you posted on the progress of our endeavoursand thank you for your continued support to Ashok Leyland.

Yours sincerely

Dheeraj G Hinduja
Chairman
London
June 30 2022

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