Ashok Leyland plans to cut debt by Rs 700 cr
Jul 29 2014 , Kolkata
"We aim to reduce debt to Rs 3,800 crore from Rs 4,500 crore from now that will bring debt equity ratio to 1:1 by this fiscal," Managing Director VK Dasari said here today.
He said this fund (Rs 700 crore) would be raised in mix of internal accruals and selling of non-core assets.
"Internal accrual will be around 50 per cent of the amount," he added.
The company had been reducing debt on a continuous basis and recently raised Rs 666 crore in QIP to pay-off its debt.
In order to remain profitable on a sustainable basis and derisking from cyclical nature of truck business, the company will focus more on exports, seeking higher growth in non-truck commercial products.
"We are aiming to bring down the non-truck commercial vehicle share to 50 per cent from around 70 per cent now over a period of time. We are also planning to increase share of exports to one-third of total revenue from 10 per cent now over next 3-4 years," Dasari said.
The company have various forms of association in few countries of Middle East, Africa, Latin America and ASEAN used as vehicle to boost exports of commercial vehicle products.