Ashok Leyland Ltd

- CAPEX for FY ’25 is estimated around ₹750 crores, consistent with earlier guidance. - No major investments have been made in the past quarter. - Potential additional investments of ₹500 to ₹750 crores in associate companies, primarily Switch and OHM, may occur during the year, but quantum is uncertain currently. - One-time operational expenses incurred for development of Centers of Excellence focused on battery packs, electric drive units, and software-defined vehicles, which are revenue expenses, not CAPEX. - No large strategic investments planned as of now; any significant investment will be communicated as it arises.

- Q1 FY25 has been a positive surprise with volume growth in MHCV by 10%, close to previous peak in Q1 FY19. - Demand on the ground remains positive; growth momentum expected to continue through the year. - Industry outlook: Worst case flattish year for MHCV, but growth is anticipated barring exceptional events. - Ashok Leyland targets market share gains through network expansion, especially in North and East India, not through discounting. - Strong product pipeline expected with many new launches across segments including passenger, ICV, and tractors. - Exports markets (Middle East, Africa) are reviving with new products to enhance volumes. - Defense business expected to double again over next 2-2.5 years. - Electric commercial vehicle sales currently small but growing, with positive customer response. - Overall, optimistic for good growth year in sales, revenues, and profitability.

- Q1 FY25 has been a strong start, with Ashok Leyland reporting record volumes, revenue, EBITDA, and PBT. - The company sees Q1 as normally the slowest quarter, so the positive momentum is expected to continue in the remaining quarters. - Demand is anticipated to stay robust barring exceptional events, supporting a good growth year overall. - Market share expansion is planned through network growth, especially in the North and East, targeting about 1,000 customer touchpoints for MHCV. - Pricing discipline will be maintained; growth will be driven by quality products and better after-sales service, not discounting. - Cost reduction efforts through value engineering continue to support margin improvement. - International markets like Middle East and Africa are showing revival, contributing to growth. - Defense business is expected to sustain high growth, potentially doubling again in 2-2.5 years. - Mid-term goal is to achieve mid-teen EBITDA margin.

- Ashok Leyland has not publicly disclosed the exact value of its defense order book. - The company indicated that its defense revenue more than doubled in FY 2024 compared to the previous year. - There is a very strong and visible pipeline of defense orders expected in the next 2 to 2.5 years. - Management expressed confidence in doubling the defense business again over this period. - No specific quantitative details on pending orders or order book were shared in the transcript for other segments.

- No major new fundraising through debt or equity has been indicated for FY ‘25 so far. - Current net debt as of June 30, 2024, stands at Rs. 1,295 crores. - CAPEX for FY ‘25 is estimated around Rs. 750 crores. - Potential investments in associate companies like Switch and OHM may be in the range of Rs. 500 to 750 crores, but no definite quantum or timeline is provided yet. - Any significant investment or fundraising updates will be communicated if they occur. - Ashok Leyland’s balance sheet is deemed strong enough to support fund requirements for subsidiaries Switch and OHM without the need for immediate external fundraising.