annualresults0304

Annual Press Conference: 

Annual Press Conference 11th June 2004

A Presentation in Two Parts: 

A Presentation in Two Parts Highlights of 2003-04 Market Financials Operations Technology Future Plans Capacity expansion Product Development / Launches Customer-centric initiatives

2003-04 Highlights: 

2003-04 Highlights

Market: 

Market

Economy - Influences: 

Economy - Influences High GDP growth of 8.7% Industrial Production : 7% Agricultural Production : 19.6% Exports : 17.1%; Imports : 25.3% Favourable settings

CV - Influences: 

CV - Influences Continuing road infrastructure development through Golden Quadrilateral and North South / East West corridors Continuing low interest and EMI make higher capacity vehicles attractive Government regulation on aged vehicles Favourable settings

MDV TIV : Pass vs. Goods: 

Numbers Pass Goods MDV TIV : Pass vs. Goods Goods segment grows 45.2% Bus market returns to robust growth, up 18.4% Even growth across regions Source: SIAM

High Growth Segments : 

High Growth Segments Healthy presence in growth segments

MDV Market Share: 

MDV Market Share Market Share maintained in Goods segment Market share increased in Northern region Improved market share in growth sectors : MAV and Pvt. Passenger Overall Market Share drop due to loss of MS in STU sector

AL - Exports: 

AL - Exports AL export grows 48.3% CNG buses seeded in South East Asian market : a promising introduction

Composition of Sales: 

4 468 5 085 48 654 3 782 35 44 837 33 483 11 354 2003-04 (6.4) Spares incl. Defence (Rs.Mil.) (14.2) Engines 33.5 Total Vehicles 48.3 Exports (89.1) Defence 33.5 Total 41.6 Goods 14.4 Passenger Domestic - Civilian % Inc. (Dec.) Composition of Sales 4 771 5 924 36 444 2 550 320 33 574 23 649 9 925 2002-03

Financials: 

Financials

Slide13: 

Rs.Million

Performance Highlights – 5 years: 

Performance Highlights – 5 years

PBIT / Cap.Employed: 

PBIT / Cap.Employed Highest ROI achieved in current year

PAT / Networth: 

PAT / Networth

EPS (Rs.): 

EPS (Rs.)

Debt Equity: 

Debt Equity

Operations: 

Operations

Capacity Utilization: 

Capacity Utilization 100% across all plants At 49,150, production of vehicles up 46%

Productivity: 

Productivity Output per employee

Asset Turns (Times): 

Asset Turns (Times)

Inventory Turns (Times): 

Inventory Turns (Times)

Current Assets Turns (Times): 

Current Assets Turns (Times)

Cost Pressures : Commodity Prices: 

Cost Pressures : Commodity Prices Steel price increase average 68 % Copper price increase 29 % Margins come under pressure Vehicle price increase : 6.2% Over 2 years

Cost Pressures : Power Tariff: 

Cost Pressures : Power Tariff Power Tariff up 10% (effective Jan ’03) compared to 02-03 9 % reduction in power consumption

Manpower: 

Manpower Separation under VRS : 337 nos. VRS outflow : Rs.223.20 Million. Current strength at 12,007, down from 15,274 in 1996-97

Technology: 

Technology

Focus on R & D: 

Focus on R & D R & D spend up from 1.2% of sale revenue in 02-03 to 2 % in 03-04. Technology Tie-ups with Hino Motors J Series Engines and with ZF for 9 speed GB. Newgen range prototypes unveiled in Jan’04 – powered by J series engine with potential to meet Euro 4 emission norms Megabus (CNG powered vestibuled bus) trials on in Delhi - performing well Investments in progress for Newgen Cab Project

Focus on R & D (contd…): 

Focus on R & D (contd…) Substantial commitments made for improving vehicle testing capabilities. H series Euro III version successfully developed. AL Engine developed to meet Euro II emission standards.

New Product introductions: 

New Product introductions Ecomet 912 Stag CNG & BS 2 3014 Tractor 1613 H 2516 H 4018 Tractor HMV 6 X 6

Future Plans: 

Future Plans

Priorities: 

Priorities Capacity expansion through least cost route Technologically improved products to meet competition Productivity improvement Manage increase in input costs through cost reduction initiatives (Value Engineering and E-sourcing)

Slide34: 

Capacity expansion Product Development / Launches Customer-centric initiatives

Capacity Expansion contd..: 

Capacity Expansion contd.. Programme I Vehicle Capacity to be raised to 67,000 p.a Programme II New Aggregates / Product improvement (High Power / Torque) Engines / GB / Axles Expansion of Cab capacity Programme III Optimisation to increase capacity to 75,000 p.a. Programme IV Newgen product range 10,000 p.a. Rs. 2000 Mn. In 2004-05 and 2005-06 Rs. 2000 Mn. In 2004-05 and 2005-06

Capacity Expansion contd..: 

Capacity Expansion contd.. Capex : (Total including R & D, Replacements, etc.) 2004 – 05 : Rs. 3 000 Million. 2005 – 06 : Rs. 2 500 Million Target to contain Fixed Assets increase to 25% for Capacity increase to 55%

Product Development / Launches: 

Product Development / Launches Buses with BS III engine: Q4 Newgen 4026 J tractor : August’ 04 Factory-built, 12 m Intercentury coach from IRIZAR-TVS : 180 hp (August’04); followed by rear engined version with 260 hp J engine Derivatives of Ecomet and Stag mini bus in diesel and CNG versions Work on for developing a Euro III engine with common Rail Fuel Injection System

Ongoing Customer-centric Initiatives: 

Ongoing Customer-centric Initiatives Project ‘Ashwamedh ’ : 3,240 mechanics and 600 garages trained all over the country Project ‘MITR’ : technical knowledge of 900 retailers, 2,600 mechanics on Leyparts enriched Sadak ka Sathi : pilot project on “owning the customer” kicked off in the North-North East corridor

On going Customer-centric Initiatives (contd…): 

On going Customer-centric Initiatives (contd…) 21 dealer outlets and 31 ASCs added during 2003-04, total service bays : 1,750 Dealers being empowered to administer warranty Call centres in Delhi, Jaipur and Indore. Helplines in Andhra Pradesh, Karnataka and Tamil Nadu 185 AMCs signed under ‘Vishvas’

Customer-centric Initiatives: 

Customer-centric Initiatives Equity partnership in model dealership Gulf Ashley Ltd, joint venture with Gulf Oil Experimentation in model dealership for total transport solutions - sales, service, parts and finance Offerings to include new range of service products Operations in weak areas of Jharkhand, Bihar and North East

Other Events: 

Other Events ALF / IBL Merger completed; Focus to continue on vehicle financing Stock split approval from shareholders in the EGM held on Feb 28, 2004

AL Share Price vs. NSE Index: 

AL Share Price vs. NSE Index AL Share Price movement in line with index

AL : Shareholding Pattern: 

AL : Shareholding Pattern Increase in FII holdings

Thank You: 

Thank You