Ashok Leyland, the flagship company of the Hinduja Group and a leading commercial vehicle manufacturer in India, has announced the appointment of K.M. Balaji as its new Chief Financial Officer (CFO), effective June 1, 2024. Balaji, who has been with the company for 31 years and currently serves as Deputy CFO, will succeed Gopal Mahadevan in this role. Mahadevan will transition to the position of Director of Strategic Finance and M&A, continuing his association with Ashok Leyland.
Balaji’s extensive career at Ashok Leyland has seen him handle a wide range of financial responsibilities, including Management Information Systems (MIS), budgeting, product cost engineering, indirect taxes, treasury, investor relations, and the management of payables and receivables. His appointment as CFO is expected to bring continuity and depth of experience to the company’s financial operations.
Gopal Mahadevan, who has served as CFO and Whole Time Director, will now focus on strategic finance and mergers and acquisitions (M&A). In his new role, Mahadevan will also continue to serve on the Board of Directors for Ashok Leyland and its subsidiaries, driving the growth agenda for the company’s subsidiary businesses and spearheading M&A strategies.
This leadership change comes as Ashok Leyland reports a strong financial performance, despite challenging market conditions. The company surpassed profit expectations for the fourth quarter, with a standalone profit increase of 19.8% to $108.36 million. This growth was achieved even as demand for trucks and buses remained weak, highlighting the company’s operational efficiency. A 7.3% reduction in input and service costs contributed to an overall expense cut of 6.5%, mitigating the impact of a nearly 6% decline in sales volume for commercial vehicles in the January-March period. Revenue experienced a slight decrease of 3.1%, but the company’s financial resilience was evident as its shares rose by up to 3.3%, reaching an all-time high.
Ashok Leyland’s strong performance is further underscored by its significant profit after tax (PAT) increase of 16.73% to Rs 933.69 crore in the fourth quarter of the financial year 2023-24. The company’s success in the light and medium commercial vehicle segments played a crucial role in this achievement.
As K.M. Balaji steps into his new role as CFO, and Gopal Mahadevan transitions to a strategic position, Ashok Leyland is poised to continue its trajectory of growth and innovation in the commercial vehicle industry. The company’s ability to adapt and thrive, even in challenging times, positions it well for future success.