Ashok Leyland targets ₹2,000 crore in savings with focus on leaner financial structure and profit growth
Ashok Leyland, the flagship company of the Hinduja Group, is shifting gears in its cost optimisation journey-having shed «excess flab» over the past two years-it is now focused on building a leaner, stronger financial structure akin to developing «a six-pack.»
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The country's second largest truck and bus manufacturer expects to achieve cost savings exceeding '2,000 crore over a three year period ending March 31, 2025, with the third phase of its cost transformation programme firmly in motion.
Having already trimmed '750 crore each in costs in FY23 and FY24, the company is targeting another '600 crore in the current fiscal. «We are moving beyond cutting excess flab to chiselling muscle,» chief financial officer K M Balaji told ET, emphasising on the firm's efforts on eliminating inefficiencies, reducing fixed costs, and leveraging pricing strategies.
Dheeraj Hinduja, executive chairman, reiterated, «Our focus is on profit. We will gain market share through our products and service but will not buy market share through aggressive discounting.»
The company's market share in the medium and heavy commercial vehicles increased to 29.4% in Q3FY25 from 28.3% a year ago. However, it's a sequential decline when compared with the share of 30.6% it had in the Q2 of FY25.
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