The AL board continues to believe that the proposal to raise the shareholding in HLFL was consistent with the philosophy to prevent any future dilution based on HLFL's growth plans.
AL touched a fresh 52-week low of Rs 47.25, falling 26.03 per cent in intraday trade on Thursday. This came a day after the company board approved the company's plan to acquire up to 19 per cent additional equity shares in HLFL.
Last month the company, during its third quarter analyst call, said that during the current market slowdown, the company had decided to conserve cost and reduce capex and investments. Earlier, the management said that capex for the year would be Rs 1,200-1,300 crore as against company's initial plan of Rs 2,000 crore. The company added that for the next 4-5 years, routine capex would be around Rs 400-500 crore.
Share price of Ashok Leyland
declined 25.25 per cent at tne closing of the market on Thursday, to Rs 48.10 per share, after hitting a 52-week low of Rs 47.25 during the day. On Friday, the price stood at Rs 43.90.
HLFL had registered a revenue of Rs 2560.64 crore in 2018-19 with a 30 per cent growth from Rs 1961.27 crore during the previous quarter. Profit after tax grew almost 51 per cent growth to Rs 275.64 crore in 2018-19 as compared to Rs 182.04 crore during the previous year.