With cash in hand, Leyland eyes new markets

Ashok Leyland Ltd, the Hinduja Group flagship company that makes trucks and buses, will look to enter new markets with new products this financial year, and possibly at acquisitions as well, after ending 2024-25 with surplus cash.

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India's third-largest manufacturer of commercial vehicles ended FY25 with net cash of 4,242 crore, with ₹3,284 crore of it generated in the fourth quarter. It had ended FY24 with net debt of ₹89 crore.

While the company will explore acquisitions and new markets, it plans to maintain its capital expenditure at about ₹1,000 crore, similar to that in FY24, Dheeraj Hinduja, executive chairman of Ashok Leyland, told Mint.

"This industry is already quite consolidated. New acquisitions should give us access to new technologies and new geographies which align with our core business," Hinduja said.

"Even if we don't go ahead with new acquisitions, we will continue to venture into new markets with new products," he added.

Ashok Leyland was able to save more than 700 crore in FY25, in part because of lower raw material prices and improved operational efficiency, according to the company.