CHENNAI/MUMBAI: Commercial vehicle giant Ashok Leyland’s long-time chief executive and managing director Vinod Dasari announced his resignation on Tuesday, citing personal reasons. While the Board has accepted his resignation, Dheeraj G Hinduja, chairman, stated that Dasari will continue on MD & CEO until March 31, 2019, to facilitate a smooth transition. Hinduja has also taken over as executive chairman with immediate effect. Dasari has been associated with the company for 14 years, and is widely credited with orchestrating the company’s revival from its two-year long slump in 2013 and 2014, when it saw six consecutive quarters of losses.
Market analysts say that while the exit does not change Ashok Leyland’s capabilities, there could be a short term impact. “As huge as Rana Kapoor’s exit from Yes Bank,” says Hardik Shah, Research Analyst, Arihant Capital. Speaking at a press meet in Chennai, Dasari did not reveal specific plans for the future, but staved off any rumours saying that the decision was not a “knee-jerk” one. “I have been thinking about it for the last few years. The company is in a strong position now, so I felt it was a good time for me to resign. It is an amicable separation and it is a purely personal decision as I wish to pursue my personal interests and continue my learning journey,” he told reporters.
He went on to add that his focus currently would be to “communicate to the employees and other stakeholders about my resignation in the right way so that no fear prevails among them”. Hinduja, meanwhile, said that the resignation was “something unexpected”. “The Company has seen tremendous growth during Vinod’s tenure. He has built a very strong team so I am confident that growth momentum of Ashok Leyland will continue,” he said, adding that he would handle responsibilities in the interim period as the “Board needs some time to find a suitable replacement”.
Hinduja also said the promoters believed that companies need to be run by professionals. Dasari has served as chief operating officer of the firm since April, 2006, and was appointed managing director in April, 2011. The board had reappointed him as chief executive officer and MD in April, 2016, for a five year term.
Sept quarter results
Chennai: Ashok Leyland, a flagship of Hinduja Group, has reported 37 per cent growth in its net profit at J460 crore for the September quarter of 2018-19 financial year, compared to the J334 crore it reported in the same period of the previous year. The company’s revenue grew by 25 per cent at J7,608 crore in thequarter under review from J6,076 crore recorded during the same quarter a year ago. The EBITDA in 2FY19 increased by 32 per cent and stood at J806 crore, against J612 crore the company posted in Q2FY18.