See overall export growth of 30-40%: Ashok Leyland

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26 Aug, 2025 12:21

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Vinod K Dasari, MD, Ashok Leyland is confident of delivering the order of 4000 buses in the next 12 months time. The company has already delivered the first bust at the end of July.Revenues of Rs 1500 crore are expected in the next 9-12 months from this order, said Dasari. According to him the volume growth could be around 8-10% if the domestic market grows faster.

With regards to exports, the company expects and overall growth of 30-40% for combination of buses and trucks, said Dasari.India's second largest commercial vehicle manufacturer Ashok Leyland has bagged orders for 4,000 buses worth Rs 1,500 crore from State Transport Undertakings (STUs), the company said in a filing to the stock exchanges today.Ashok Leyland will offer a mix of JanBus, midi-buses and ultra low entry (ULE) buses as a part of this order, the company said in its filingBelow is the verbatim transcript of Vinod Dasar’s interview on CNBC-TV18 with Sumaira Abidi and Reema TendulkarQ: Congratulations on the 4000 bus order from JNNURM II scheme, have you already started to deliver buses, when will you complete executing order?A: We delivered the very first buses at the end of July. So starting from end of July we slowly ramp up and I think in the next 12 months or so we should be able to execute these orders.Q: What is the kind of revenue contribution you expect and when will the revenues come into your books?A: Roughly Rs 1,500 crores in the next 9-12 months.Q: Any more order state orders that you are expecting in next 6-12 months?A: We have some pending orders from Tamil Nadu, for which we already have the orders; they have to give schedules and they are working through that. We have many export orders like from Sri Lanka, we have to 2200 orders. So the bus business will be fairly busy over the next 9-12 months.Q: What is the quantum of the pending orders from Tamil Nadu STU?A: I would say maybe another 1000 vehicles; I don't exactly know but should be about that.Q: In terms of amount, how much will you rake in from Tamil Nadu order? A: It depends, it’s a variety of models, so it’s not just like one model where I can take an average for JanBus, and for JNNURM too, we had to calculate.

Q: Could you add some more colour on the export orders, what is the total contribution of bus exports to revenues, and how much will export orders grow? A: Exports normally are about 10% of our business, I think this year it will be higher, 15% or so. Overall, we expect 30-40% growth in our exports business for combination of trucks and buses, predominantly buses.Q: What could the volume growth be, you had indicated earlier that 8-10%growth expected in volumes, will you beat that target?A: Trucks is still about 50-60% of our business, in volume terms they're about 60-70% of our business. So we have to wait to see how fast how the domestic truck business comes back. If it comes back faster and if it does then we should make that 8-10% growth.Q: How are the margins like in the bus business and since you have landed this order, will your margins be better than 5% level on an overall level?A: I can’t give you an exact margin because there is a whole mix of buses. Basically 5-6 types of buses, so each bus will carry a different margin. Although the specifications are same, some changes are there from STU to STU and each one is an individual tender, so margins can differ from STU to STU also to some extent. So, it is difficult to give one margin number but they would be decent and not great.The 5% plus margins we had talked about for Q2, that we would be able to achieve.