MOSL: Morning India (28/September/17)-1. ART: Ashok Leyland FY17 (Fund Infusion in subsidiaries continue)-2. Automobile (Healthy festive retails drive 2W and PV sales)

​MOrning India (28/September/17): 1. ART: Ashok Leyland FY17 (Fund Infusion in subsidiaries continue); 2. Automobile (Healthy festive retails drive 2W and PV sales)

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Ashok Leyland | ANNUAL REPORT THREADBARE (ART) FY17: Fund Infusion in subsidiaries continue

• AL’s FY17 annual report highlights the acquisition and merger of Hinduja Foundries (HFL) at an EV of INR16.3b. FY17 standalone EBITDA declined to INR22.0b (FY16: INR22.5b), primarily due to higher employee cost and other operating and administrative expenses. 10.3m ESOPs were allotted during the year to Mr Dasari, of which 7.5m were allotted at an exercise price of INR1, leading to an additional employee expense of INR181m.
  
• Operating cash flow improved to INR21.5b (FY16: INR16.8b), led by (a) lower tax outflow due to tax credits on accumulated losses of HFL, and (b) lower working capital requirement. While Hinduja Leyland Finance (HLF) continued to perform well, other subsidiaries’ performance remained strained.
  
• Fund infusion and liability assumed on behalf of subsidiaries, associates and JV increased to INR6.1b (FY16: INR2.2b). Gross debt at standalone level declined to INR22.1b (FY16: INR29.5b including HFL). On a consolidated basis, AL recognized exceptional gains of INR1.9b and goodwill of INR4.5b on acquiring Nissan’s stake in three JVs, making them wholly owned subsidiaries. ICD of INR7.1b was given and received back during the year.