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Ashok Leyland Ltd.

BSE: 500477 Sector: Auto
NSE: ASHOKLEY ISIN Code: INE208A01029
BSE 00:00 | 29 Nov 148.60 -1.35
(-0.90%)
OPEN

150.00

HIGH

150.40

LOW

148.25

NSE 00:00 | 29 Nov 148.55 -1.45
(-0.97%)
OPEN

150.35

HIGH

150.35

LOW

148.20

OPEN 150.00
PREVIOUS CLOSE 149.95
VOLUME 262619
52-Week high 169.40
52-Week low 93.20
P/E 60.90
Mkt Cap.(Rs cr) 43,630
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 150.00
CLOSE 149.95
VOLUME 262619
52-Week high 169.40
52-Week low 93.20
P/E 60.90
Mkt Cap.(Rs cr) 43,630
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ashok Leyland Ltd. (ASHOKLEY) - Director Report

Company director report

To the Members

PERFORMANCE/OPERATIONS

Your Directors have pleasure in presenting the Annual Report of AshokLeyland Limited ("AL"/"the Company") along with the audited FinancialStatements for the financial year ended March 31 2022.

FINANCIAL RESULTS

Rs in Crores

Standalone Consolidated
2021-22 2020-21 2021-22 2020-21
Revenue from operations 21688.29 15301.45 26237.15 19454.10
Other Income 76.13 119.50 86.81 131.16
Total Income 21764.42 15420.95 26323.96 19585.26
Profit/(Loss) before tax 527.61 (411.91) (199.59) (67.08)
Less: Tax expenses/(Credit) (14.22) (98.23) 85.86 2.52
Profit/(Loss) after tax 541.83 (313.68) (285.45) (69.60)
Balance profit from last year 3459.91 3768.20
Profit available for appropriation 4001.74 3454.52
Appropriation:
Dividend paid during the year (176.13) -
Transition adjustment and other adjustment -
Other Comprehensive (Loss)/Income arising from re-measurement of defined benefit plan (net of tax) (26.67) 5.39
Balance of profit carried to Balance sheet 3798.94 3459.91
Earnings per share (Face value of Rs 1/-)
- Basic and diluted (Rs) 1.85/1.84 (1.07)/(1.07) (1.22)/(1.22) (0.56)/(0.56)

COMPANY'S PERFORMANCE

The Commercial Vehicle market (0-55t GVW) in India grew by 26.0% YoY intotal industry volume (TIV) after dropping by 38.0% over the last two consecutive years.M&HCV segment (>7.5t GVW) grew by 49.7% while LCV segment (0-7.5t GVW) grew by16.7%. International Operations grew by 83.4% over last year driven by similar gains inboth M&HCV and LCV segments.

Your Company sold 65090 M&HCVs in the domestic market (3789 Busesand 61301 Trucks including Defence vehicles) registering a growth of 41.5% over lastyear. LCV with sales of 52222 vehicles grew by 11.9% over the previous year.

Your Company's sale in M&HCV Trucks segment (excluding Defencevehicles) in India grew by 43.5% to 60947 units in FY22 as compared to 42483 units inFY21. Your Company enhanced its product portfolio with CNG models in ICV trucks segment tocater to the boost in demand for alternate fuels in the ecommerce and last-mile deliveryapplications. Further product enhancements like High Horsepower Mining Tipper and SurfaceTipper helped your Company to strengthen its presence in Construction and Miningindustry. Your Company pioneered in launching 8x2 Multi-Axle Truck with Dual Tyre LiftAxle and 6x2 Multi-Axle Truck with Single Tyre Lift Axle which were well received duringthe year.

Your Company's sale in M&HCV Bus segment (excluding Defencevehicles) in India grew by 10.8% to 3018 units in FY22 as compared to 2723 units inFY21. The Aftermarket business showed a commendable growth of 30.0% over last year. YourCompany added 71 new outlets during the year increasing the total count to 907 primarytouch-points. To keep up with the rising commercial vehicle operations in Northern andEastern regions of India your Company opened more than half of the new outlets in theseregions.

In LCV new product 'Bada Dost' has helped your Company registerhighest ever sales of 52222 vehicles since inception. Your Company observed overall IOsales growth of 37.0% over FY21. Penetration in LCV portfolio across geographies was madewhile retaining market leadership position in MDV bus segment in SAARC and GCC countries.Your Company has achieved sales of 20944 engines in Power Solutions Business aided by newbusiness development with corporates and equipment manufacturers. Despite shortages inavailability of semi- conductor chips your Company has registered robust growth in PowerSolutions Business. Your Company supplied an all-time high 1125 units of completely builtup units (CBUs) including bullet proof vehicles and 600 kits to the Indian army and inaddition completed the execution of 711 Ambulances in record time under emergencyprocurement.

Highlights of performance are discussed in detail in the ManagementDiscussion and Analysis Report attached as Annexure F to this Report. During the yearthere has been no change in the nature of the business of the Company.

SHARE CAPITAL

During the year under review there were no changes to the sharecapital. The issued and paid up share capital of the Company consist of 2935527276shares of face value Rs 1/- each amounting toRs2935527276/- as on the date of thereport.

DIVIDEND

The Dividend Distribution Policy framed in line with Regulation 43A ofSEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 is("SEBI" Listing Regulations) appended to this report and is hosted on theCompany's website at https://www.ashokleyland.com/backend/in/wp-content/uploads/sites/2/2021/01/Dividend Distribution Policy. pdf#toolbar=0.

In line with the policy your Directors have recommended a dividend ofRs 1/- per equity share of face value of Rs 1/- each for the financial year ended March31 2022 involving an outflow of Rs 293.55 Crores.

MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OFTHE COMPANY BETWEEN THE END OF THE FINANCIAL YEAR AND THE DATE OF THE REPORT

There are no material changes and commitments affecting the financialposition of the Company between the end of the financial year and the date of this Report.

TRANSFER TO RESERVES

Your Company does not propose to transfer amounts to the generalreserve out of the amount available for appropriation.

FINANCE DEBENTURES

During the year under review your Company has issued and allotted onprivate placement basis secured redeemable non-convertible debentures (NCDs) aggregatingtoRs200 Crores. The funds raised through NCDs have been utilised for capital expenditureand general corporate purposes.

Long term funding

(a) Secured Non-Convertible Debentures (NCDs):

During the year your Company has placed NCDs to the extent ofRs200Crores. No redemption of NCDs were made during the year.

(b) Rupee Term Loans:

Fresh secured rupee term loans ofRs450 Crores were availed during theyear. Your Company repaid rupee term loan instalments amounting to Rs 12.50 Crores on thedue date during the year.

(c) External Commercial Borrowings (ECBs):

During the year your Company has not availed fresh ECBs and noinstallments were due for repayments.

As at March 31 2022 Long term borrowings stood atRs3245.25 Crores asagainstRs2576.52 Crores on March 31 2021.

CREDIT RATINGS (ASSIGNED IN FY 2021-22)

Name of the agency Type of instrument Amount Rs Crores Rating Action
ICRA Cash Credit / WCDL 2000.00 Reaffirmed [ICRA] AA (Negative) / [ICRA] A1+
Term Loans 1450.00 Reaffirmed [ICRA] AA (Negative)
Unallocated 200.00 Reaffirmed[ICRA] AA (Negative) / [ICRA] A1+
Non-fund based limits 1200.00 Reaffirmed [ICRA] AA (Negative) / [ICRA] A1+
NCDs 850.00 Assigned / Reaffirmed [ICRA] AA (Negative)
Commercial Papers 2000.00 Reaffirmed [ICRA] A1+
CARE Term Loan - Long Term 500.00 Reaffirmed [CARE] AA (Negative)
NCDs 600.00 Reaffirmed [CARE] AA (Negative)
Fund-based /Non-fund based - LT/ST 500.00 Reaffirmed [CARE] AA (Negative) / [CARE] A1+
Fund based - LT/ST working capital limits 2000.00 Reaffirmed [CARE] AA (Negative) / [CARE] A1+
Commercial Paper - (Standalone) 2000.00 Reaffirmed [CARE] A1+
Non-fund based - LT/ST-BG/LC 1200.00 Reaffirmed [CARE] AA (Negative) / [CARE] A1+

HUMAN RESOURCES

Your Company continued the people framework of 6 levers - CultureCapability Capacity Compassion Collaboration and Contribution to meet dynamic businessrequirements towards building a high performing and caring organisation. Your Companyseamlessly adopted the hybrid working model prior to opening up offices across variouslocations during the financial year of 2021-22.

Some of the key People initiatives undertaken during the year include:

• Long Term Wage Settlements were signed in 6 manufacturing plantscovering 4400 Associates with specific clauses focusing on flexibility in operationsProductivity Quality Safety Total Employee Involvement etc. linked with variable incomefor Associates.

• Bonus/Ex-gratia for FY21 was concluded and Memorandum ofUnderstanding was signed covering 8 manufacturing plants and 5100 Associates.

• Under the aegis of Ashok Leyland University successfullylaunched Quality Academy which focuses on developing TQBM champions across your Companyand Electronics Academy aimed at enhancing the electronics capability to be future ready.

• New HRMS Anchor 2.0 was launched to provide a superior userexperience for employees. Anchor 2.0 can be used on a mobile and has features such as askHR for closer connect with employees Chatbot Simplified user interface and AI- basedpersonalised and intuitive Learning eXperience Platform (LXP) which provides multimodallearning through MOOC (Massive Open Online Courses) from platforms such as Coursera edXLinkedIn Learning and more. The new LXP provides an engaging learning experience throughmobile app personalised recommendations and dynamic leader boards.

• A 2-week long learning event Learning Champions League (LCL)was organized to pique curiosity and motivate executives towards Learning initiatives CARE2.0 (Customer Appreciation and Relationship Excellence) program was launched during theLCL to enhance the Customer Centricity competency of executives.

• Gamified simulations for providing future skills such as Agileway of Working and Design Thinking were conducted across the business and functions.

• Leaders talk series by Industry experts on topics such as"Next Generation of Robotic Surgeries" and "A peek into the Metaverse NFT& more" to keep employees up to date with latest technology and trends

• A select set of young high potential employees underwent a yearlong development journey as a part of Young Talent Program (YTP). The program followed ablended approach of learning by combining Virtual Classes by XLRI Peer Learning MOOCCourses and mentoring.

• Awards:-

Your Company was awarded the prestigious TISS Leap Vault CLO Award -Gold in the category of 'Virtual Learning Program'. Two awards were won in People First HRExcellence Awards 2021 Champion in "Leading Practices in Learning andDevelopment" and Winner in "Leading Practices in Employee Engagement.

EMPLOYEE HEALTH & SAFETY

The end of the financial year 2020 was marked by the COVID-19 crisis which not onlyimpacted livelihoods but also lives as well and this crisis has extended for a periodbeyond a year. Your Company swung into action by forming an Emergency Response Team withthe primary objective to focus on the health and safety of employees and their familymembers through interventions as appropriate which included measures such as "Workfrom Home" policy access to qualified medical practitioners setting up of adedicated help-line to address physical as also emotional well-being. Your Companycontinues to monitor the well-being of its workforce and has taken several measures toengage with and provide timely support to the families that were affected by the pandemic.

Your Company is committed to build an Environment Health and Safetyculture and has formed an "Environment Health and Safety council" at the apexlevel chaired by a Director. The EHS council reviews all safety incidents both reportableas also near-miss events every month and proactively identifies measures to strengthensafety practices across its manufacturing locations. Your Company has also rolled-out acomprehensive EHS policy reiterating its commitment to protect the Environment Health andSafety of its employees and other stakeholders.

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