Vigilant on capex spending, Rs 500 crore remaining: Ashok Leyland

Chennai: Ashok Leyland on Monday said that guidance for the fiscal remains unchanged at Rs 750 crore. Of the proposed capex, the company has spent Rs 270 crore till the September quarter, Gopal Mahadevan, whole-time director and CFO said on Monday.

The flagship company of the Hinduja Group said it has about Rs 500 crore remaining of the corpus which will be invested in product range, capabilities and debottlenecking.

Mahadevan said that until company would be extremely vigilant on capex spending while highlighting that till the end of the second quarter and that the money so far had been spent on modular platforms, to develop a new range of LCVs and electric vehicles.


Ashok Leyland had posted a loss of Rs 147 crore during the September quarter as against a profit of Rs 39 crore from the same period last year.

"This year we cannot compare year on year, since almost the whole of the first quarter was washed out. Month on month, quarter on quarter we are seeing improvement," Mahadevan said.

He highlighted that while last year's domestic M&HCV business stood around 57 per cent of the revenue, this year it was about 45 per cent. He said the sustainability of these businesses was "crucial" now. Further, he added that other businesses, including light commercial vehicles (LCV), aftermarket, power solutions, defence and international markets were nearly at the pre-covid levels.