Chennai, May 25 (IANS) Providing a whopping Rs.389 crore towards diminution in value of its investments in joint ventures, commercial vehicle major Ashok Leyland Ltd on Wednesday said it would focus on its core business and rationalise further investments.
The company said the rationalisation of investments will be completed this fiscal.
The company closed last fiscal with a net profit of Rs.722 crore on a turnover of Rs.18,822 crore.
Ashok Leyland had posted a net profit of Rs.335 crore on a turnover of Rs.13,562 crore for the year ended 31.3.2015.
Speaking to reporters here Vinod Dasari, managing director, said the joint venture with Japanese auto group Nissan still exists. Discussions are on with Nissan to see how to take forward the joint venture.
Ashok Leyland has exited the joint venture with John Deere to make earthmoving equipment.
Dasari said the company will be focussing more on medium and heavy commercial vehicle segments.
“It has been a successful and a fulfilling year for us. The investment we made in new products, the expansion of network as well as continued efforts in driving operational efficiency has helped us maintain the growth momentum. We are now poised to seize the opportunity the market presents in the immediate future,” he said.
The company board on Wednesday approved raising funds through issue of 1,350 lakh equity shares and Rs.700 crore of debt on private placement basis.
The board also recommended a dividend of 0.95 paise per share for the year under review.