He also said the company is yet to get land allotment from Andhra Pradesh and Telangana governments for setting up an assembly plant in both the states.
Declaring the results to the media here, Managing Director Vinod K. Dasaril said the company posted a total revenue of Rs 21,332 crore and a net profit of Rs 1,223 crore last fiscal.
During 2015-16, the company had posted a revenue of around Rs 19,992 crore and a net profit of Rs 389 crore.
For the fourth quarter of 2016-17, Ashok Leyland reported a net profit of Rs 476 crore on standalone basis as against a net loss of Rs 141 crore in the corresponding period of 2015-16.
The commercial vehicles manufacturer's revenue for the fourth quarter increased by 13 per cent to Rs 7,057 crore from Rs 6,237 crore earned during Q4 of FY16.
According to Dasari, the company is planning to invest around Rs 500 crore during the current fiscal towards product development -- in medium and heavy commercial vehicle segment -- Information Technology (IT) and debottlenecking of the plants.
Looking at the year ahead, Dasari said the prospects for the economy and the commercial vehicle industry seem good as the Gross Domestic Product (GDP) may get a fillip due to GST regime and the infrastructure sectors are also doing well.
Dasari said all the company's business lines -- defence, spares, exports and gensets -- are doing well.
With the company focussing on exports, for every two trucks sold in India, one should be sold overseas in order to escape the 3-5 years cyclicality faced in the domestic market, he said.
However, to address the domestic cyclicality, which comes every 3-5 years, Ashok Leyland is planning to reduce its dependency in the domestic commercial truck business, which was brought down from 85 per cent to 60 per cent.
Queried whether the company is not actively pursuing the Andhra Pradesh and Telangana governments for allotment of lands for assembly plants, Chief Financial Officer Gopal Mahadevan said it takes time from any state government to get land allotment.
He also said the company is getting ready to the likely rule that a commercial vehicle manufacturer has to make a fully built vehicle and not just the chassis alone.
The company board recommended for the approval of the shareholders a dividend of Rs 1.56/- per equity share of Re 1/- each for the financial year ended March 31, 2017.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.