He said a lot of it is going to depend on what is the demand from the economy, and not on the transition to BS-VI transition.
Ashok Leyland expects 20 percent growth in the fiscal year 2019-20 on pre-buying ahead of transitions into BS-VI, said Chief Financial Officer Gopal Mahadevan. The company's shares saw a see-saw ride after the management announced in their earnings conference call that FY20-FY21 will be a flattish year because of the BS VI transition and pre-buying, which is a big departure from Managing Director and CEO Vinod Dasari's outgoing guidance of 30 percent growth.
"2020-2021 is the year when we will get into BS-VI but if you were to look at it empirically, when we had transitioned into BS-II then into BS-III and BS-IV. In each of these years when the transition happened, the industry grew," said Mahadevan.
He added that a lot of it is going to depend on what is the demand from the economy, and not on the transition to BS VI transition.
"In January, Ashok Leyland hit record market shares and this is despite raising our prices by about 2 percent. This exemplifies and validates our business model stating that not only will we aspire for market share growth, we will also aspire for profitability. So we move forward to February and March, let us see, we are going to still shoot for higher market share and let us hope that we were able to get there. There is no plan to reduce market share," said Mahadevan.
"Our team is putting together plans which is very clear that we would want to grow our market share methodically over the next five years," he further mentioned.Source: CNBC-TV18Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.