In light of the current market conditions, India’s second-biggest maker of trucks and buses, Ashok Leyland, is planning to scale down its capital expenditure guidance from Rs 600 crore to Rs 450 crore, which may now have to rework on its investment and capex plans to save on cash.
Meanwhile the company has recently received its shareholder’s nod for raising Rs 1650 crore, which could be done either through fresh issue of Non-Convertible Debentures or QIP or for that matter via debt. The proceeds of these funds will be utilized towards the company’s capital expenditure and for its various subsidiaries.
The company recently disappointed the street by reporting a 22% drop in first-quarter net profit from a year-ago period, as robust sales of its 2011-launched pick-up truck Dost were counterbalanced by higher power costs and a nearly 50% jump in marketing expenses. Further, the company also has a tepid outlook going forward. It expects the industry growth to be flat and estimates pressure on volumes.
| Company Name | CMP |
|---|---|
| Ashok Leyland | 160.70 |
| Force Motors | 19134.20 |
| Olectra Greentech | 1250.00 |
| Tata Motors | 410.80 |
| SML Mahindra | 3709.15 |
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