Ashok Leyland to invest up to Rs 500 cr in FY15
Ashok Leyland said that it would invest INR 450 to INR 500 crore, by way of capex and investment during the current fiscal year (FY).
The company needed to manage INR 6,000 crore of assets in seven locations across the world. For this maintenance capex would be needed. Besides, the company needed to make some investment in joint ventures, said Gopal Mahadevan CFO of Ashok Leyland.
“I can’t have zero capex or investment. What will not happen is that there won’t be any chunky capex like INR 1,000 crore to INR 1,500 crore on capacity expansion. We will be investing INR 450 crore to INR 500 crore,” said Mahadevan.
Debt reduction programme
Ashok Leyland mobilised around INR 660 crore by selling its non-core assets including land and diluting its stakes in other companies last year.
The company had set a target to bring down its debt equity 1:1.
According to Mahadevan already the debt to equity ratio has already come down from 1.4:1 to 1.2:1.
The company mobilised around INR 660 crore by selling non core assets, including land and its stake in IndusInd Bank and in Defiance Testing.
He added that “We are not in a hurry to sell non-core assets, we are in extremely stable financial position.”
He further added that Debt Equity is a combination of reduction in debt and increase in equity, the company raised around INR 667 crore through QIP, which again was used to pay debt.