- Ashok Leyland's sales volume in FY 2019-20 declined by 24% compared to the last 4 years and 36% compared to FY 2018-19, severely impacting profits which declined 88% - Despite a 40% decline in income, Ashok Leyland increased dividends paid by 48% because the majority were acquired by its holding company Hinduja Group based in London - Key ratios like net profit margin, return on capital employed, and inventory turnover fell below ideal levels, indicating financial difficulties, but Ashok Leyland is positioned to recover due to upcoming projects and those postponed due to the pandemic

1. Ashok leyland AR
Analysis
February 5, 2021
- V santhosh Kumar
- 122071074

3. Key Takeaways from AR
3 Chairman’s Message

4. Direct Revenue of Ashok
Leyland from its Customers.

5. 144

6. Key info from the AR
Data Related to sales volume
8

7. Key Observation
From Sales data we can see that
the sales volume in FY 2019-20
has declined by 24% compared
to last 4 years and its declined by
36% compared with FY 2018-
19. Thus resulted in severe
decline in the Profit of 88%

8. Key Takeaways from AR (Financial Reports)
16

9. Few “STUN” moments from Financial Result
From the financial result we can infer that there is a 40%decline in
income of Ashok Leyland.
But we see that the dividend paid is increased by 48%.
But HOW ?

10. It’s Because………..

11. The holding company of ashok Leyland which Hinduja Group of companies
Headquartered at London,UK and other Tied up companies acquired most of the
dividend not the shareholders.
150
110

12. Presence of Ashok Leyland of UK share
Market(which is the home share market of it holding company)
110
Note 1.3 Investments

13. How Ashok Leyland is
going to Recover from this
“BIG Fall of 19-20” ?

15. Key Ratios
Profitability Ratios Mar '20 Mar '19 Mar '18 Ideal Val
Net Profit Margin(%) 1.47 6.82 6.51 B/w 10-20%
Return On Capital Employed(%) 6.07 30.06 32.59
B/w 10-20%
Liquidity And Solvency Ratios
Quick Ratio 0.83 0.7 0.42 1
Efficiency Ratios
Inventory Turnover Ratio 14.11 10.82 15.15 B/w 5-10
Total Assets Turnover Ratio 1.95 3.67 3.7
It varies from
co. to co.

16. My Conclusion
Even though there is a severe bad
time for Ashok Leyland in FY-2019-
20 they will definitely strike back and
strike back Hard and Come back like
“Phoenix” and Rule the heavy motor
segment.
Because of their upcoming Lined-up
Project and few project which were
postponed because of the Pandemic
outbreak

17. Any Questions ?

18. Thank you
Presented to : Dr. V Srinivas Kumar
SASTRA DEEMED TO BE UNIVERSITY