ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Strong R and D Effort

Strong R and D Effort Hansavivek ASHOK LEYLAND has suffered a setback in its results for 1983 when freight availability to transport operators continued to be low and sale of vehicles was consequently slightly tower than that of previous year. In order to keep control on inventories, production levels were regulated to match sales volumes. Company produced 13,411 vehicles as against 16,363 numbers in previous year. Licensed capacity is 47,000 numbers and installed capacity 23,000. Company sold 14,372 vehicles against 15,028 numbers previously. In spite of continuous and substantial escalation in costs of inputs, prices of vehicles were maintained during the whole year; In addition excise duty bertefits announced by Central government were also entirely passed on to customers. Directors state that with reduction in excise duty and economy showing some signs of revival, demand for commercial vehicles is now expected to improve. Sales declined from Rs 276.09 crore to Rs 266.33 crore and gross profit from Rs 19.07 crore to Rs .17.87 crore, reflecting a slight erosion of margins. As depreciation claimed more and there was also a tax liability of Rs 32 lakh against nil, net profit fell to Rs 6.60 crore from previous year's Rs. 10.73 crore. Dividend is maintaind at 18 per cent and is covered 2.22 times by earnings against 3.61 times.

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