Having posted a record March-quarter profit, Ashok Leyland is upbeat about its growth prospects in the current financial year. In an interview with Swaraj Baggonkar, its executive chairman Dheeraj Hinduja shared the plans regarding its new plant in Lucknow to be opened in the second quarter of FY26 and the stock market listing of its finance subsidiary HLF. Excerpts:
What is the update on Hinduja Leyland Finance (HLF) listing?
As an NBFC, HLF has to go through the whole regulatory approval process for listing. We go by the indications given to us (by regulators), and as we understand it today, all but the final go-ahead have been obtained. We are waiting for the final nod. We cannot provide an exact time frame.
But HLF has been performing well…
The company continues to do well on all parameters, and it is growing its portfolio. Hinduja Housing Finance has also grown very well, and it is now the fourth-largest affordable housing finance company in India. Although the listing (of HLF) is delayed, the performance of the company is strong. And, hopefully, it (the delay) would only help us list it at a better pricing.
Will there be further fund infusion into HLF?
HLF is a strong NBFC. A lot of its growth is dependent on the capital that it has. The cash flow available to Ashok Leyland is very strong. Any support that the subsidiary companies need for their own growth, we are very well positioned to provide that.
Will the upcoming Ashok Leyland plant in Lucknow make only EVs?
Our intention is to service the markets in Uttar Pradesh and its neighbouring states. The intention is to have a majority EV but we will have diesel as well. The government has announced the procurement of 14,000 electric buses. Our plant is very timely and the Uttar Pradesh government has also been very keen on changing its fleet to all-electric.
How many buses will Ashok Leyland supply under the PM eBus Sewa scheme?
It is dependent on the tenders we win. At the moment we have an order book of close to 1,500-1,600 buses for (group firm) Switch Mobility. We will keep tendering for new opportunities. We have some interesting products coming up during the course of the year which will further enhance our chances of winning these tenders.
Has there been any fast-tracking of procurement of defence vehicles lately?
There has been a larger requirement for them for many months. These orders need to go through the tendering process and this financial year should be a very strong one for the supply of defence vehicles. We have won many of the tenders and we have offered many new products as well.
What steps have been taken for improving localisation in EVs, including purchase of battery cells locally?
The government has made it clear that it would like all EV products to be built in India. We are planning to see how our future batteries are sourced and there are plans underway which we would be able to discuss in the next few months.
The Ashok Leyland bonus share issue has come after 14 years. How do you rate the company’s performance in FY25?
All of us have put in the efforts to ensure we delivered good numbers and we hope that the shareholders, who have been requesting us for a long time for bonus shares, are happy with this announcement today.