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7/31/2019 CFO Investors Meet Nov 2011
1/50
Investors Meet
November 2011
7/31/2019 CFO Investors Meet Nov 2011
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Presentation outline
Overview of Hinduja Group
CV Industry Trend and Outlook
ALs PerformanceCapex / Investments / Funding
AL Strategies / Plans
Volumes & Margin outlook
Joint Ventures
AL / CFO / IR / Nov11 2
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`Hinduja Group Overview
Led by the Hinduja Bank inGeneva, and the IndusInd Bank inIndia, offers a range of services toits ever-growing international
client base
Gulf Oil is arguably one of the mostevocative names in the oil industryserving the needs of the motorist and of
industry for more than a century.
HTMT IT Services spearheads the Group's ITactivities by providing professional resourcesof highest quality services and full range ofsoftware solutions across several industriesfor clients in India and overseas.
The Hinduja presence in media &communications helps realize innumerableexciting infotainment products
Hinduja Group is engaged in realestate development projects, involvingboth commercial and residentialproperty
Ashok Leyland is India's second largestcommercial vehicles and diesel enginemanufacturer and Hinduja Group's
flagship company in India.
Automotive
IT / ITES Banking & Finance
Infrastructure
Hinduja group was established in 1914 in Mumbai
Employs more than 50,000 personnel worldwide
Global presence across 30 countries
Media & Entertainment
Energy & Chemicals
AL / CFO / IR / Nov11
http://images.google.co.in/imgres?imgurl=http://www.roadtransport.com/blogs/big-lorry-blog/Ashok-L%20Newgen%208x4.JPG&imgrefurl=http://www.roadtransport.com/blogs/big-lorry-blog/2007/10/new-ashok-leyland-tippers-a-pr.html&usg=__THErXL9g_xvWOimDVxcO3-J7y7A=&h=336&w=407&sz=32&hl=en&start=29&tbnid=Xdz0wDXDlcEIHM:&tbnh=103&tbnw=125&prev=/images?q=ashok+leyland&gbv=2&ndsp=20&hl=en&sa=N&start=207/31/2019 CFO Investors Meet Nov 2011
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CV Industry Trend and Outlook
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Freight generating sectorsperformance
AL / CFO / IR / Nov11
RBI in its recentcredit policy hasindicated a GDPgrowth rate of 7.6%.(against 8.0% earlier)
Growth is expectedto accelerate in II half
/ FY12
5Source: CMIE Oct 11
*Till July 11 Demand for steel is likely to pick up in HY 2 FY 12, with industrial and infrastructuralconstruction activity gathering pace.
As the monsoon season comes to end, demand for cement likely to go up as constructionactivity is expected to pick up.
Ministry of Environment & Forests has decided to scrap go/no go classification of coal blocks.This will give a major boost to the coal production in coming months.
Growth in cargo traffic is likely to be supported by significant growth in Indias foreign trade.
Actual
Apr-Aug
2011-12
Estimate 2010-11Major Crops Production NA 1.6% 14.6%
Steel * 7.9% 8.0% 8.9%
Cement 3.7% 7.2% 4.5%
Coal -2.4% 5.0% -0.3%
Crude Oil 6.1% 4.0% 11.9%Port Cargo Traffic 4.5% 3.0% 1.6%
Exports 54.0% 22.0% 41.3%
Imports 40.6% 26.0% 22.5%
IIP * 5.8% 7.7% 8.2%
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Infrastructure plan NHAI projectsNHAI Projects Kms
Total length 50 024
Completed (till Aug11) 16 117
Under Imp. / Balance 33 907
Golden Quad 5846 5828 100NS-EW Ph I & II 7300 5810 80NHDP Ph III 12109 2555 21NHDP Ph IV 14799 -- --NHDP Ph V 6500 652 10NHDP Ph VI /VII 1700 -- --Port conn/Others 1770 1272 72
Total CompletedKms Kms %
GQ gave impetus during 2003-07
Similar growth can be expected fromother phases
Contract under implementation for10830 Kms
AL / CFO / IR / Nov11 6
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Road transport continues to takeshare from Indian Railways
Railways share of freight traffic fell from 40% in 2000-01 to 30% in 2009-10
7
86 82
70
61
61
40
30
0
10
20
30
40
50
60
70
80
90
100
1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2009-10
Railways
Share of freight (bn tonne km)
84
48
36
3030
19
15
0
10
20
30
40
50
60
70
80
90
1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2009-10
RailwaysShare of Passengers (bn tonne km)
AL / CFO / IR / Nov11
Source: SBI Caps Research
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Freight rates movement
Post diesel price hike, except in few pockets in East, operators are able to pass
on the increase to customers
Source: Business Line
AL / CFO / IR / Nov11
Rates given above are for 1 tonne (16 tonne capacity)
8
0.00
0.50
1.00
1.50
2.00
2.503.00
3.50
Nov-08 Nov-09 Nov-10 Feb-11 May-11 Aug-11 Sep-11 Nov-11
(Rs.
'000)
Truck rates from Kolkata to major cities
Chennai Delhi Mumbai Bangalore
0.00
1.00
2.00
3.00
4.00
Nov-08 Nov-09 Nov-10 Feb-11 May-11 Aug-11 Sep-11 Nov-11
(Rs.
'000)
Truck rates from Chennai to major cities
Calcutta Delhi Mumbai Bangalore
0.00
0.501.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
Nov-08 Nov-09 Nov-10 Feb-11 May-11 Aug-11 Sep-11 Nov-11
(Rs.
'000)
Truck rates from Delhi to major cities
Calcutta Chennai Mumbai Bangalore
0.00
0.501.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
Nov-08 Nov-09 Nov-10 Feb-11 May-11 Aug-11 Sep-11 Nov-11
(Rs.
'000)
Truck rates from Mumbai to major cities
Calcutta Chennai Delhi Bangalore
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Interest rate movement
Current rates ranges from 13.5% to
17.0% for First Time Users, 12.5% to15.5% for Small Road TransportOperators, 11.5% to 14.5% for LargeFleet operators.
Rates have hardened by 200 bpsover the last one year.
Increase of Repo rates by RBI by25 bps. Consequent increase ininterest rate yet to be passed on tocustomers fully
No specific stress in collectionsexcept in some parts of Karnataka,
AP and Goa (due to cessation of ironore mining activities)
There are no constraints in availabilityof Finance
Net NPAs of NBFCs are at low levels
(less than 0.5%)AL / CFO / IR / Nov11 9
AccreditedPvt
Financiers,81.0%
PSBs/ OtherBanks, 9.7%
Own Funding,5.8% Other Modes,
3.5%
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CV Market Performance Trucks
AL / CFO / IR / Nov11 10
(Detailed Report - Crisil Research Oct 11)
Decrease in MAV TIV (32%) in Southern Region, partially offset by 14% Increase inICV TIV
21% TIV drop in Tractor Trailer in Western region More buying by First Time Users (FTUs) rather than large fleet operators in North Tipper segment which has shorter replacement cycles of 4-5 yrs is witnessing
strong replacement demand Tipper segment in FY 07 & 08 witnessed volumes which have been historical peaks
so far and the replacement volumes of the historical highs are likely to support near
term tipper demand.
Haulage (16T) 6586 7835 14421 8007 9129 17136 (14) (16) 19
Tippers (16T-31T) 10396 14729 25125 7816 10137 17953 45 40 42
Tractor Trlrs (30T-49T) 6344 7190 13534 6065 8035 14100 (11) (4) 13
MAV (22T-31T) 27294 27706 55000 26222 27492 53714 1 2 2
ICV (9T-15T) 13471 16267 29738 11510 12105 23615 34 26 21
Total 64091 73727 137818 59620 66898 126518 10 9 15
HY1
Y-o-Y
Q2
Q-o-Q
Q2
FY 12
Q2
FY 11Segment
Q1
FY 12
HY1
FY 12
Q1
FY 11
HY1
FY 11
Q2
Y-o-Y
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CV Market Performance - Buses
AL / CFO / IR / Nov11 11
In Q1/Q2 FY12, no orders from STUs underJnNURM scheme. Rising fuel cost could drive the shift to public transport. Improving national highway infrastructure would boost inter-city travel by road. Demand from niche segments viz., IT, BPO, schools and corporates to boost
demand for buses in cities
Private 3749 4581 8330 4028 4855 8883 (6) (7) 22
STU 3134 3030 6164 3477 4800 8277 (37) (26) (3)
ICV 4026 4197 8223 4223 3469 7692 21 7 4
Total 10909 11808 22717 11728 13124 24852 (10) (9) 8
Q2Y-o-Y
HY1Y-o-Y
Q2Q-o-Q
Q2FY 12
Q2FY 11
Segment Q1FY 12
HY1FY 12
Q1FY 11
HY1FY 11
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Growth outlook M & HCV Trucks
YOY Growth %
Source: SIAM, CRISIL Research
Volume
in000s
12
Emission change in Oct 10
Led to advancing purchases to I half / 2010-11AL / CFO / IR / Nov11
31
45
51
74
60
67
62
87
64
74
65
90
0
10
20
30
40
50
60
70
80
90
100
Q1 FY10 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY11 Q1 FY12 Q2 FY12 Q3FY12P
Q4FY12P
Q1 Q2 Q3 Q4 Annual
2010-11 90 48 21 17 36
2011-12 7 10 5 4 5-7%
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Growth outlook - Buses
YOY Growth %
Source: SIAM, CRISIL Research
Volum
ein000s
13
Emission change in Oct 10Led to advancing purchases to I half / 2010-11
AL / CFO / IR / Nov11
79
12
14
12
13
10
13
11
1212
14
0
2
4
6
8
10
12
14
16
Q1
FY10
Q2
FY10
Q3
FY10
Q4
FY10
Q1
FY11
Q2
FY11
Q3
FY11
Q4
FY11
Q1
FY12
Q2
FY12
Q3
FY12P
Q4
FY12P
Q1 Q2 Q3 Q4 Annual
2010-11 57 40 -12 -14 11
2011-12 -7 -10 11 10 4-6%
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Outlook appears promising
Positives:
Freight generating sectors of the Economy are doing well(revival seen in construction & mining)
Replacement demand exists for tippers
Better road systems will increase demand for superior,
factory built vehiclesIncreasing trend seen in freight rates in all pockets postdiesel price hike.
No under utilisation of fleet capacity
Restriction on overloading across states
Negatives:
Further rise in fuel prices subsidy on Diesel could bequestioned
Inflation / Interest rates negative outlook
AL / CFO / IR / Nov11 14
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Ashok Leylands Performance
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ALs performance HY 1 FY 12
AL / CFO / IR / Nov11 16
AL market share in Bus segment in HY1/FY12 improved over last year
Segment Q1
FY'11
Q2
FY'11
HY1
FY'11
FY
2010-11
Q1
FY'12
Q2
FY'12
HY1
FY'12
Bus TIV 11728 13082 24810 72363 10909 11808 22717
Growth Y-O-Y % 56.7 40.1 47.5 68.0 (7.0) (9.7) (8.4)
- ALL 4184 5435 9619 30044 4355 4741 9096
Growth Y-O-Y % 89.2 49.0 64.2 83.1 4.1 (12.8) (5.4)
- ALL MS% 35.7 41.5 38.8 41.5 39.9 40.2 40.0
Truck TIV 59620 66899 126519 401754 64091 73727 137818
Growth Y-O-Y % 89.8 47.6 64.9 99.0 7.5 10.2 8.9ALL 15058 16657 31715 94389 12277 15547 27824
Growth Y-O-Y % 238.3 90.1 140.0 131.7 (18.5) (6.7) (12.3)
-ALL MS% 25.3 24.9 25.1 23.5 19.2 21.1 20.2
Total TIV 71348 79981 151329 474117 75000 85535 160535
Growth Y-O-Y % 83.5 46.3 61.7 93.6 5.1 6.9 6.1
ALL 19242 22092 41334 124433 16632 20288 36920
Growth Y-O-Y % 188.8 78.0 116.7 117.8 (13.6) (8.2) (10.7)
-ALL MS% 27.0 27.6 27.3 26.2 22.2 23.7 23.0
Drop in MS inTruck due to: Decrease in
MAV TIV (32%)in SouthernRegion
21% TIV drop inTractor Trailer
TIV in Westernregion
More buying byFirst Time Users(FTUs) thanlarge fleetoperators inNorth
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ALs exports performance
Country / zone wise exports in comparison with PY is given under:
Middle East - showing signs of recovery.
Growth in Sri Lanka & Bangladesh markets sustained. Targeting 30% growth (13000 vehicles)in FY 12. Share of exports in Total volume expected to be reach 15% in 3 years
Volume in Nos.
17AL / CFO / IR / Nov11
Q 1 Q2 HY1 Q 1 Q 2 HY1 FY
Sri Lanka 1345 1714 3059 761 1135 1896 5503
Bangladesh 554 574 1128 644 581 1225 2325
Middle East 405 624 1029 371 413 784 1355
Others 235 318 553 164 221 385 1123
Total 2539 3230 5769 1940 2350 4290 10306
2010-112011-12 HY 1FY12
registered35%increaseover PY
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Defence, Spares & Power Solutions
Sale of Stallion kits to VFJ has increased more than five foldin HY1/FY12 to Rs.170 Cr (PY Rs.27 Cr); Balancesupplies in second half against order for 2700 kits.
Sale of FBVs to Indian Defence has gone up by more thansix times in HY1/FY12 to 121 vehicles (PY 17 vehicles)
Spares (Domestic & Exports) revenue at Rs.377 Cr inHY1/FY12 has registered a 18.7% growth (HY1/PY Rs.318 Cr)
Though Sale of engines in Q2 was flat, engines salesregistered a drop of 8% in HY1/FY12 over PY due to lower
supplies to Telecom industry
AL / CFO / IR / Nov11
Engines
Q 1 Q 2 HY 1 Q 2 HY 1 Q 1 Q 2 HY 1
Manufactured 2293 2431 4724 (0.1) (5.2) 2548 2434 4982
Leypower 246 226 472 (47.3) (47.1) 464 429 893
Traded 866 716 1582 25.8 7.2 907 569 1476
Total 3405 3373 6778 (1.7) (7.8) 3919 3432 7351
2011-12 2010-11% Inc/(dec) over
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Segment wise Revenue split
AL / CFO / IR / Nov11
HY1 FY 12 Revenue Break up HY1 FY 11 Revenue Break up
Bus
17%
Defence Kits
& Spares
9%
Exports
10%
Engines
2%
Cyclical
61%
Bus 19%
Defence
Kits &
Spares 6%
Exports 9%
Engines 2%
Cyclical
64%
Higher exports & defence volumes have improved the non-cyclicalrevenue.
ALs share in cyclical business has come down by 3% in HY1 Targeting to achieve non-cyclical revenue share of 50% in next few
years
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Qtr 2 FY 12 Financial PerformanceRs Lakhs
Revenue up primarily due to pricing actions (in CY & PY) and also due to higherspares and defence sales in CY.
Material cost contained to be at the same level of last year Lower volumes and higher operating cost have resulted in lower operating
margin (by 0.5%) Vehicle sales from PNR @ 8090 in Q2/FY12 vs. 1533 in PY Fresh borrowings in HY 2 of FY 11 & higherworking capital resulted in higher
Financial Expenses
AL / CFO / IR / Nov11 20
Q2
2011-12
% of
Net
Sales
Q2
2010-11
% of
Net
Sales
YOY %
growth
HY1
2011-12
% of
Net
Sales
FY
2010-11
% of
Net
SalesNet Sales / income from operations 309457 100.0 271395 100.0 14.0 559008 100.0 1111771 100.0Consumption of raw materials 227574 73.5 199692 73.6 14.0 407384 72.9 812117 73.0Employee cost 25151 8.1 21148 7.8 18.9 50125 9.0 95972 8.6Other expenditure 23617 7.6 20072 7.4 17.7 43921 7.9 81926 7.4Gross operating margin 33115 10.7 30483 11.2 8.6 57577 10.3 121756 11.0Financial expenses 6270 2.0 3948 1.5 58.8 11604 2.1 16366 1.5
Other income 1033 0.3 624 0.2 65.6 1444 0.3 1533 0.1Gross Profit (PBDT) 27878 9.0 27159 10.0 2.6 47417 8.5 106923 9.6Depreciation 8593 2.8 6406 2.4 34.1 17059 3.1 26743 2.4Profit from ord activities before tax 19285 6.2 20753 7.6 (7.1) 30358 5.4 80180 7.2Net Profit 15408 5.0 16706 6.2 (7.8) 24033 4.3 63130 5.7
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Capex, Investments & Funding
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Capital Expenditure
Capital expenditure in HY1/FY12 add up to
Rs.240 Cr mainly in the following areas:
PNR Plant Rs.42 Cr
LCV (Sunrise) project Rs.31 CrNeptune Engine Rs.6 Cr
IT infrastructure Rs.23 Cr
Plant / Other projects Rs.138 Cr
Full year capex plan for FY12 to be containedwithin Rs.600 Cr.
AL / CFO / IR / Nov11
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Investments
AL / CFO / IR / Nov11
DescriptionHY1
FY11-12
Nissan Joint Venture (Sunrise) 21
John Deere & Alteams 9
Hinduja Leyland Finance 60
Defiance 15
Others 35
Total 140 FY12 investments to be contained within Rs. 500 Cr in FY12.
Rs. Cr
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Working CapitalRs. Cr.
AL / CFO / IR / Nov11 24
Tighter control on vehicle inventory exists (413 Nos. increase over Mar 11) Vehicle stock as on 30thSep11 is 8659 nos. Receivables has come down by Rs. 187 Cr over Mar 11 Target to bring down working capital to around Rs.1000 Cr by Mar12
Production inventory 1079 1304 1066Finished inventory
Vehicles/Engines 809 778 743
Finished Parts 147 127 130
Finshed inventory - Total 957 905 873
INVENTORY 2035 2209 1940DEBTORS 887 1074 801Loans & Advances
Capital 68 28 63
Others 1061 748 1029
Total Loans & Advances 1129 776 1092
CURRENT ASSETS 4051 4059 3832CREDITORS 2542 3095 2306
WORKING CAPITAL 1509 964 1527
Particulars Sep-11 Mar-11 Sep-10
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Funding plans
Borrowed ECB loans US $ 75 Mn (Rs. 350 Cr) at below5% p.a. Average cost of total debt: around 6% p.a.
Total loan outstanding at Rs. 2800 Cr as of Sep 11 with1.2:1 gearing.
Likely level of spend in 2011-12 towards:
Capex Rs.600 Cr (PNR, LCV, NGC, Nepture, R&D, etc.)
Investment in JVs Rs.500 Cr (Nissan, JD, ALTEAMS, HindujaLeyland Finance etc. Hinduja Foundries, etc,)
Plan to contain total borrowings within Rs.750 Cr in FY 12.
Debt /Equity levels not likely to cross 1:1 by Mar12Sufficient headroom available for debt infusion.
AL / CFO / IR / Nov11
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Ashok Leylands Strategies/Plans
AL / CFO / IR / Nov11
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Engine Platform Neptune Series
The NEPTUNE engine range
A new family of 4 and 6 cylinder inline enginesranging from:
160 230 hp in 4 cylinder engines
270 380 hp in 6 cylinder engines
Of modular capacity from 4.7 litre to 8 litre BS3and BS4 / Euro IV compliant and protected forEuro-V, with cooled EGR and SCR options
Quieter, stronger and more reliable by design, with
higher power and torque and better fuel efficiencyAlso benchmarked for lowest operating andmaintenance costs
27AL / CFO / IR / Nov11
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Engine Platform H Series
Turbocharged intercooled H SeriesBS 3 Diesel engine (160 HP inline)
Turbocharged intercooled H SeriesBS 3 Common Rail engine (ensureshigher fuel efficiency)
Turbocharged intercooled H SeriesBS 3 Diesel engine (180 HP rotary)
28AL / CFO / IR / Nov11
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Pant Nagar production & sales
AL / CFO / IR / Nov11 29
Production from Pant Nagar has increased over the quarters Presently it is contributing over 30% of companys production / sales It is targeted to produce around 36% of the total volumes from Pant
Nagar in II half / FY12 (32000 vehicles in FY12)
Q2/FY'12 Q1/FY'12 Q2/FY'11 Q1/FY'11 FY'11
Total Production 21437 21969 25571 22090 95337
PNR Production 6801 5878 1698 786 12865
% of PNR Prodn 31.7% 26.8% 6.6% 3.6% 13.5%
Total Sales 23659 19277 24589 21400 94106
PNR vehicles - sale 8090 4893 1533 643 10878% of sales from PNR 34.2% 25.4% 6.2% 3.0% 11.6%
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50% growth in network in 2 years
30 touch points added in Apr-Oct11 (55 nos. in 2010-11). Out ofthese more than 75% have been added in regions other than South
ALs network in North India will match the network in Southern Indiain next few months
AL is presently having equal presence of touch points across India
50% of customer touch points are less than 5 years old
AL / CFO / IR / Nov11 30
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Network growth
AL / CFO / IR / Nov11
VehicleVolumes
TouchPo
ints
36323 5092084000 100000
170178 205
252
316 316
365
474
146 138
160
222
0
100
200
300
400
500
600
700
800
900
0
50000
100000
150000
08-09 09-10 10-11 11-12
AL Sal Vol No of outlets Dealer + ASC
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Customer Care: Raising the bar
The national helplinecomes with the promise of
Response within4 hoursanywhere on the Golden QuadrilateralRestoration (vehicle back on road) in48 hours;If not restored, AL will pay Rs.1000/day of delay
TatkaAL rolled out along GQ in 2ndJan 10 & well received by customers.
AL / CFO / IR / Nov11 32
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Hinduja Leyland Finance
Operations have spread to 394 locations withmanpower strength over 850 nos.
Disbursements till 30thSep 11 is Rs. 950 Cr
(FY 11 > Rs. 1000 Cr)Equity capital of Rs 325 Cr. - contribution by AL& other group companies.(ALs share Rs.129 Cr)
Financed >2150 ALL vehicles in HY 1 FY 12
(7.7%). Corresponding disbursementsRs.400 Cr.
AL / CFO / IR / Nov11 33
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Alwar bus body building facility
Alwar: New bus body building facility put up
with globally bench-marked processes andmachinery Capacity: 1800 buses; InvestmentRs. 20 Cr.
High-end ULE buses roll out from Alwar Unit for
supply to Northern STUs
Shift this along with RAK slide for global busstrategy
Capacity to increase by two fold to 5400 buses p.a. in next 1 Yr (Cost Rs. 75 Cr.)
34AL / CFO / IR / Nov11
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IRIZAR TVS
JV between AL, TVS & Sons & Irizar of Spain
State of art coach building facility at Viralimalai (nearTrichy) with an investment of Rs. 30 Cr.
Has built up area of 2 lakh Sq. Ft.Has three production lines & seven paint booths
Assembly and sub assembly under one roof
Capacity to produce 2200 coaches a year
IT 09, the indigenously designed luxury coach forintercity transportation by Irizar TVS recentlyunveiled
35AL / CFO / IR / Nov11
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Bus Plant at Ras Al Khaimah
A vital manufacturing facility to feed GCC and African
markets. (Amount invested Rs. 110 Cr)Production has already begun. 470 buses have beenassembled during AprSep 11. Plan to assemble 750 nos.in HY 2.
Has the capacity to produce 2,000 buses annually
Eventually to produce trucks tooPart of ALs global Bus and Coach strategy
AL / CFO / IR / Nov11 36
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Investment in Optare UK
Subscribed for a 26%
stake in Optare Plc UK(US$ 7.5 Mln).
Pioneer of low floor doubledecker in UK.
Optare known for its lowcarbon range, low floor,
mid buses and modernrange of city buses.
Optares electric bus hassecured several orders asmore countries in Europe
promote cleaner, greenermobility.
Acquisition part of GlobalBus and Coach Strategy.
AL / CFO / IR / Nov11 37
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Volumes and Margin outlook
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Outlook on volumes
Including Exports of 13000 vehicles and LCV sales AL is likely to cross 1 lac salesvolume in FY12 [excluding LCV (Sunrise) Volumes]
AL is well positioned to improve its market share as capacity will not be a constraint. Capacity addition in Uttarkhand will be sufficient to take care of next 2 years
requirements.
AL / CFO / IR / Nov11 39
Actual Estimate
HY 1 FY HY 1 Full Year FYBUS
TIV 22,717 49,000 24,852 47,553 3.0%
ALL 9,096 22,000 9,619 20,425 7.7%
ALL MS % 40.0 44.9 38.7 43.0
TRUCK
TIV 137,818 299,000 126,518 275,235 8.6%ALL 27,824 64,000 31,715 62,674 2.1%
ALL MS % 20.2 21.4 25.1 22.8
TOTAL
TIV 160,535 348,000 151,370 322,788 7.8%
ALL 36,920 86,000 41,334 83,099 3.5%
ALL MS % 23.0 24.7 27.3 25.7
YoY %
2011-12
Actual
2010-11
C di i
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Commodity price movements
Commodity prices softened during first half Expect pressure for price increase to suppliers to subside during second half
AL / CFO / IR / Nov11
PeriodCopper
$ per TonRubberRs. /Kg
Zinc$ per Ton
Nickel$ per Ton
Alumnium$ per Ton
Steel HRRs./Kg
Mar'11 9543 220 2371 26827 2370 39.75
Apr'11 9507 239 2389 26339 2399 39.50
May'11 8945 225 2180 24213 2386 38.10
Jun'11 9056 222 2251 22382 2349 38.10
Jul'11 9639 212 2418 23763 2324 38.10Aug'11 9061 205 2239 22093 2288 37.60
Sep'11 8335 215 2100 20422 2274 38.50
% Increase (Q-o-Q, HY-o-HY)
Q 1 FY 12 (5.1) 0.9 (5.1) (16.6) (0.9) (4.2)
Q 2 FY 12 (8.0) (3.2) (6.7) (8.8) (3.2) 1.0HY 1 FY 12 (12.7) (2.3) (11.4) (23.9) (4.1) (3.1)
M i O l k
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Margin Outlook
Targeting to maintain / improve operating
margins around 10.5% for FY 12 to besupported by:
Pricing action (3.8%), 2.5% taken in Apr11,
0.7% taken in Jul11 & another 0.6% taken
in Nov11
Commodity based price increase pressure(mainly steel and rubber) to be contained
Stringent controls on operating cost /working capital levels
Full year margin targeted around 10.5% of revenue
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Joint Ventures
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Construction equipment JV with John
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Construction equipment JV with JohnDeere
New company formed with 50:50 partnership with John
DeereCommercial launch of backhoe loaders is planned inNov 11.
AL would supply engines for these equipments.
Around 500 Back hoe loaders planned for sale in FY 12.Next few years to scale up volumes to > 8500 Nos.
Targets to achieve 15% market share by 2015.
Total Project cost is Rs.401 Cr
Capex incurred till date Rs.140 CrAL investment in this JV as of date
is Rs. 51 Cr.
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J i t t ith ALTEAMS
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Joint venture with ALTEAMS
Plant inaugurated in January 2010
Fully established to meet both Telecom andautomobile sector requirements
Supplying Gear box casing, case oil coolers &connection housings to AL (meets 65% of ALs
requirements) .High Pressure Die Casting Technology ensuressavings in material consumption by >10%
Future supplies to include cylinder head
cover & inlet manifoldSecured LOI from other Auto OEMs
Total Project cost is Rs.161 Cr
Investment by AL is Rs.35 Cr
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V l C ti U id t ti l
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Value Creation - Upside potential
Better operating leverage thanks to increasing
demand for higher tonnage vehicles. Capacity nota constraint
Better utilisation of Pant Nagar facility resulting inhigher profits
Better capacity utilisation consequent to productionof LCVs for Nissan JV
Export volume to improve due to availability of
higher HP engines
trucks with factory built cabin
Buses featuring latest design/technology
Benefits expected to flow from JVs in near future
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M&HCVLCVs Construction
equipment
Foundry Engines & Components Business
Auto Electronics Exhaust SystemTechnology
Engineering and Testing Services
Defence
Automotive Sector
Wider presence in Automobile SectorAL / CFO / IR / Nov11
Ashok Leyland shareholding pattern
http://images.google.co.in/imgres?imgurl=http://www.24-7pressrelease.com/attachments/064563/LOGO_Continental.jpg&imgrefurl=http://www.24-7pressrelease.com/press-release/former-director-of-sales-for-continental-tire-adds-the-conti-tire-line-up-to-new-company-64563.php&usg=__4gxD-zUGiL2oZSknOoeFPcl1nss=&h=141&w=304&sz=19&hl=en&start=1&tbnid=fPLndhH3iHQDBM:&tbnh=54&tbnw=116&prev=/images?q=continental+AG+logo&gbv=2&hl=en&sa=G7/31/2019 CFO Investors Meet Nov 2011
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Ashok Leyland shareholding pattern(as on 30th Sep, 2011)
HindujaAutomotive Ltd
50.98%
Residents10.76%
Fis, InsuranceCo, State Govt,
GovtCompanies
12.99%
FIIs16.18%
Banks & MFs2.41%
Body corporate& others
6.68%
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Thank You
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