Ashok Leyland Limited (ASHOKLEY) Earnings Call Transcript & Summary

Before we begin today's AGM proceedings, may I request all to observe a minute silence in fond memory of our Chairman Emeritus, Mr. Ram Shahaney on his first death anniversary today. Mr. Ram Shahaney was Ashok Leyland's first Indian Managing Director, and was with Ashok Leyland and the Hinduja Group for over 3 decades. He was a visionary architect who laid the strong foundation in manufacturing, engineering and technology for the company, the magnificent edifice we see today. His vision has inspired leaders of all generation and his contribution to the company and the industry is unparalleled. We miss him dearly. Thank you. We will now begin the AGM proceedings. Dear shareholders, good afternoon, and a warm welcome to you all to the 72nd Annual General Meeting of Ashok Leyland Limited being held through video conferencing. For the smooth conduct of the meeting, the video audio of all the members will be in mute mode. The audio and video will be opened only for those shareholders who have preregistered themselves as speakers. Please note that as per the requirements, the proceedings of the Annual General Meeting will be recorded and be hosted on the website of the company. I now hand over the proceedings to Mr. Dheeraj G. Hinduja, Chairman of Ashok Leyland Limited. Over to you, sir.

Good afternoon. I have pleasure in welcoming the shareholders, representatives of Hinduja Automotive, financial institutions, banks, foreign institutional investors, mutual funds and insurance companies to the 72nd Annual General Meeting of Ashok Leyland Limited. It is now the appointed time for the meeting. The Annual General Meeting for the financial year 2021 is held through video conferencing in compliance with the circulars issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India. The company has taken all the steps to ensure that the shareholders are provided an opportunity to participate in the Annual General Meeting and vote electronically. Live broadcast of the proceedings of this meeting is provided. Participation of shareholders through video conferencing is reckoned for the purposes of quorum as per the circulars issued by the Ministry of Corporate Affairs and Section 103 of the Companies Act 2013. The requisite quorum being present, I formally declare the meeting open. I would like to take this opportunity to introduce to you the members of the Board. Mr. Sanjay Asher, Chairman of the Audit Committee and Stakeholders Relationship Committee.

[Foreign Language]

Ms. Manisha Girotra, Chairperson of the Nomination and Remuneration Committee; Mr. Vipin Sondhi, Managing Director; Professor Dr. Andreas Biagosch; Dr. Andrew Palmer.

[Foreign Language]

Mr. Jean Brunol.

Hello.

Mr. Jose Maria Alapont.

Hello.

Mr. Saugata Gupta.

Hi.

Dr. CB Rao.

Hi.

Mr. Gopal Mahadevan, Whole-time Director and Chief Financial Officer; Mr. Ramanathan, Company Secretary.

[Foreign Language]

The representatives of the statutory auditors and the secretarial auditors of the company are also present at this meeting from their respective locations. The register of directors and key managerial personnel and their shareholding, register of members, register of contracts of arrangements, in which directors are interested and the certificate from the statutory auditors in accordance with the Regulation 13 of the SEBI Share Based Employee Benefits Regulation 2014 relating to the employee stock option scheme are available for inspection by the members electronically, if they so desire. As the meeting is being held through video conferencing, the facility for appointment of proxies by the members was not applicable, and hence, the inspection of the proxy register is not available. In compliance with the circular issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India, the notice dated July 7, 2021, convening this Annual General Meeting and the copy of the annual report and the audited financial statements of the company for the financial year ended March 31, 2021, has been circulated on August 13, 2021, through electronic mode to the members of the company and with your permission, I shall take them as read. Due to the ongoing pandemic of COVID-19, we could not print physical copies of the annual report for the 2021 and dispatch the same to you. Dear shareholders, good afternoon. I hope you and your family are keeping well. It is a pleasure to welcome you to the 72nd Annual General Meeting of your company in the virtual format. Though this can hardly replicate our meeting in person, I will do my best to share the contours of progress of your company and hope that our next interaction will be a physical one. I believe this is also a good opportunity to reflect on the factors that influence your company's business and to get a sense of the challenges we face, the opportunities that lie ahead and how we reimagine your company's future. As we are aware, the last fiscal year was unprecedented due to the COVID-19 pandemic. Its impact both as a health crisis and macroeconomic disruptor has been quite significant. India's GDP contracted last fiscal by over 7% in 2020-2021. Faced with the unprecedented situation, the Government of India and the Reserve Bank of India have been continuously calibrating several economic measures, including various stimulus programs. This set of measures has resulted in improving consumer confidence and enhancing industrial production in the second half of the last fiscal. As a leader in commercial vehicle, your company always recognized the crucial role of the commercial vehicle industry that it plays in our country's socioeconomical progress. I wish to take you through some of the challenges your company faced and the resolute steps that were taken to stay on course. The demand for commercial vehicles declined sharply in the fiscal year 2020-'21, more particularly in the certain product segments such as bus, haulage and tipper applications. The vehicle sales volume improved during the latter part of the year with progressive unlocking of the economic and social activities. However, apart from the pandemic, an unprecedented shortage of semiconductors affected our output, especially in the last quarter, while the increases in commodity prices affected margins. Notwithstanding the adverse financial performance last year, you will be pleased to note that taking various factors into account, the Board of Directors has unanimously recommended payment of dividend from out of the reserve to address your interests. Despite the unprecedented challenges, your company did not swerve from the path of technological innovation and product development. The high point during the year was the successful introduction of the AVTR range of medium- and heavy-duty modular trucks, a feat we are all proud of. You may recall that we planned our entry into the light-duty range to balance the overall product portfolio and address the volatility of commercial vehicle business cycles. This strategy has been validated by the runaway success of Dost during the year and now by Bada Dost in the adjacent payload segment. Bada Dost was developed by your company's technical team in a record time line of 22 months, another significant achievement which we all must be proud of. This introduction has helped your company reach the highest ever position in sales volume and market share in its class. Our international operations were also impacted by COVID. But here again, we used the opportunities to strengthen our organization. Defense and Power Solutions businesses maintained their success on an even keel. During this difficult period, the aftermarket business performance was near normal, improving on the reach, turnover and service penetration. In fact, our aftermarket operations geared up even more to support the road transport community with agility and empathy. Our journey of digital transformation of the business, which began in 2017, has taken a further leap, transforming the way we look at our business and processes internally and the way we engage with our customers and partners externally. This has made the whole experience fulfilling and profitable for all, consistent with our ethos of Aapki Jeet, Hamari Jeet. As you are aware, your company has the ambitious vision to be among the global top 10 commercial vehicle manufacturers. In the pursuit of your vision, your company constantly evaluates the changing market dynamics and customer needs to make the connect with the customers more purposeful and mutually rewarding. I would like to update you on some transformational initiatives we are taking in this context. Your company has always been pioneering the introduction of contemporary technologies in India in emission, safety and ride comfort and for better transport economics. Consistent with this approach, over 15 years ago, your company has initiated an alternate propulsion plan and successfully introduced CNG buses in Delhi. This was followed up with a plan for zero emission through launch of electric buses. Your company has taken up electric vehicle transformation in the bus and LCV range as a strategic goal. The addressable market globally for electric buses and light trucks is expected to reach $70 billion by 2030 from the current base of around $5 billion. This expected growth could further intensify in a strong policy scenario as more nations mandate and advance their long-term zero carbon goals. As many of you are aware, your company has a notable presence in the U.K. through its subsidiary, Optare. In order to reinforce and accelerate the efforts in zero carbon mobility and to provide a uniform approach to electric vehicle technology development for global markets, your company has now combined all the electric mobility assets into a single entity under the name of Switch Mobility. The unique advantage of the new entity are the electric vehicle development capabilities and customer experience that straddle advanced markets such as the EU as well as the India-like growth markets. This is in addition to our low-cost engineering, agile development and sourcing advantages in India. In Switch Mobility, your company has the unique opportunity of servicing global requirements by providing both value and premium electric commercial vehicles. Already 280 electric buses are plying in the U.K. and India, clocking more than 26 million miles. These electric vehicles represent the highest global standards in this domain. In addition, I'm also excited about your company's new range of light electric vehicles, led by the flagship model, Bada Dost, as an electric vehicle geared towards the last mile delivery. We will be launching more products in the bus and light truck categories and have plans for entering many more international markets, apart from undertaking more intensive coverage in India. I'm happy to inform you that Dana Incorporated, a global leader in drivetrain and e-propulsion systems, has made an investment in Switch Mobility, signifying their confidence in our electric vehicle strategy. Extending further in our line of business, customers and operators are increasingly looking to be asset light. This has become more pronounced in the context of the higher capital cost of the electric vehicles. Pay per mile is now becoming the new norm and is expected to extend to all sectors of passenger and cargo mobility. Therefore, your company's role is getting extended beyond products to providing appropriate solutions to customers. It is the considered view of your company that such a role is efficiently executed through a stand-alone entity, which is closer to customers on a real-time basis. For this, a new entity has been established called OHM Mobility, and the main differentiating factor is its versatile digital platform developed by your company that provides a 360-degree view of the customers' operation to drive improved efficiency and profitability. An MoU has been signed by OHM Mobility with Siemens for a strategic partnership in an identified areas of cooperation. Switch Mobility and OHM Mobility as extended arms of your company will accelerate and deepen our engagement with electrification in the bus and LCV segments. Your company will, in parallel, continue to focus on innovations in product with alternate fuels and other customer solutions. As one of the leading markets in the world, India's logistics industry is expected to reach close to $400 billion in size over the next 5 years. Aided by digital enablers, I'm also pleased to share with you today another new initiative promoted by your company for digital transportation solutions to play the role of journey partner to our customers through the asset life cycle. We aim to realize the same through a unified and asset-light digital platform for our fleet owners and other logistic value chain stakeholders based in India. This setup is built on a cutting-edge digital platform of platforms and backed by strong organizational capabilities to offer as a one-stop shop, a truly differentiated and value accretive offering to our customers and value chain partners. I look forward to sharing more details on this in due course. Looking ahead, the outlook for FY '22 is positive, notwithstanding the impact faced in the first quarter of this fiscal year due to the second wave of COVID. India's GDP in 2021-'22 is projected to grow by 9.5%. Continued economic recovery and renewed focus on infrastructure building should support strong recovery in the commercial vehicle industry. Apart from your company's core product range of medium and heavy vehicles, light and intermediate vehicle segments are expected to make robust gains. Your company has competitive products in every segment which augurs well for the company's future performance. However, your company will continue to keep a close watch on the trends to initiate timely course corrections as may be necessary. For your company, the stakeholders and business sustainability are as ever at the top of the agenda. I must make a special mention of our employees. Despite the immense challenges of working from home alongside own personal and family health and safety concerns, they worked as a team to position successful products and launch new growth initiatives, keeping their morale high. We owe a debt of gratitude to them. During the last several months of COVID pandemic, your company took every precaution to support the well-being of our employees and their families. Apart from seamless transition to work from home, protective infrastructure and processes were in place. Vaccination of all of our employees is being pursued intensively to attain the goal of complete vaccination of all the employees and associates. Your company is fully committed to the environment, social and governance agenda. We have been driving our efforts under environmental and social domains while practicing good corporate governance alongside a culture of transparency, accountability, compliance and disclosure. To provide the due focus and the required oversight of this endeavor, a committee for ESG has been formed at the Board level. The most satisfying and rewarding moments come from our corporate social responsibility efforts in education, health and water. Your company has been successful in keeping the children who are covered by our Road to School program engaged throughout the pandemic period and ensuring that their studies are not affected. Currently, nearly 55,000 students across India are covered and a further 50,000 students through our other group companies and the Hinduja Foundation. In addition, the Jal Jeevan program has contributed to making more than 600 million liters of safe drinking water available to remote villages and around our plants. Despite the difficulties faced in our business, your company, as a resilient organization, remains positive and excited about the future. Your company will continue to invest in new technologies, people, competencies and creative business models, ensuring that the interests of our customers and all stakeholders are all safeguarded. In closing, I would like to thank your company's extended family of dealers, suppliers, banks, financial institutions, investors, strategic partners and customers for their continuing faith in us. I'm thankful to the various central and state government agencies that have been supportive of your company. As always, I'm grateful to you for reposing your faith in the management and being an integral part of your company's journey. Thank you. I will now request the Managing Director and Chief Executive Officer, Mr. Vipin Sondhi, to make an audiovisual presentation.

[Foreign Language] Ladies and gentlemen. Good day. I take great pleasure in welcoming all our shareholders to the 72nd Annual General Meeting for FY '21. We hope that you and your families are keeping safe and vaccinated. FY '21 was a year of challenges across the globe due to COVID-19. This pandemic is not yet over, and I urge each one of you to not let work gone down. The nationwide lockdown due to the pandemic impacted jobs and economic growth. The GDP contracted by approximately 7.3% during FY '21. While H1 saw substantial degrowth, perhaps the biggest in independent India, there was a turnaround in H2 of FY '21 on the back of unlocking of activities in urban centers, growth in e-commerce, good agricultural production. The Government of India and the Reserve Bank calibrated several economic measures, including various stimuli actions. While FY '21 was a setback, the GDP projections for FY '22 are forecast at approximately 9.5% on account of sectoral reforms, Atmanirbhar Bharat, infrastructure spend spelt out in the union budget. As you may be aware, the automotive industry continues to be faced with certain challenges, supply chain constraints, rising commodity prices, especially steel, shortage of semiconductors and containers for exports. While the production output was impacted during Q4 FY '21 due to the global semiconductor shortage, we did our best to alleviate the situation through appropriate countermeasures. We've also been taking steps to mitigate the impact of steel price increases through pricing actions and value engineering exercises amongst others. My presentation will cover the following. The year gone by, FY '21, business performance, rock solid and yet resilient, ready for the future. What can be a higher purpose than serving our communities in times of need. We reached out to stranded drivers with food and medicine. Our workshops were kept running to provide 24/7 support to vehicles carrying essentials. Our team developed an automatic respiratory assist device for providing primary ventilation support to patients. We will continue to do the best for the communities around us. Health and safety of our employees and stakeholders has been of utmost priority. We set up an emergency response team, ensuring continual communication with employees and their families and all our stakeholders. Understanding the importance of the emotional well-being, our company has set up a toll-free help line for our employees and their families. Vaccination of our employees and their families has been facilitated across our factories and the field on a war-footing basis. While the pandemic posed several challenges, our company continued to build capabilities with several new product launches. The AVTR modular truck platform, the Bada Dost, the BOSS LE and LX and Falcon, Gazl were all launched virtually and quite grand at that. Ashok Leyland won big at the Apollo CV awards. MHCV trucks, AVTR and BOSS, won 3 awards; Tipper of the Year in 2 segments, MDV and HCV, Cargo Carrier of the Year ICV category. Bada Dost was adjudged the CV of the year and the Pickup of the Year within 6 months of its national launch. Business performance. The domestic MHCV market share for Ashok Leyland has remained relatively unchanged in FY '21. The truck industry saw a degrowth of 17% and Ashok Leyland volumes degrew by approximately the same. The bus TIV has a steep drop. We foresee recovery once the replenishment of fleet to BS6 by STUs pickup. The demand for LCVs was driven by e-commerce and growth in the rural economy. On a full year basis, while the TIV fell by about 2.7%, our market share for LCVs grew by 2.1%. Despite the pandemic, our MHCV and LCV trucks grew by 46% and 29%, respectively, over FY '20 volumes. Bus volumes degrew by 45% year-on-year due to schools and offices remaining shut. Our company recorded a 52% year-on-year growth in defense volumes. Our cars revenue remained on a par with FY '20 despite losing one quarter of sales due to the pandemic. The Power Solutions business volumes hit an all-time high on the back of several new business opportunities, registering a year-on-year growth in volumes of 17.5%. On a full year basis, our revenue stood at INR 15,301 crores vis-a-vis INR 17,467 crores last year, lower by about 12%. Our EBITDA was lower at INR 535 crores, which is 3.5% of revenue. We recorded a net loss of INR 314 crores in FY '21 as against a net profit of INR 240 crores in FY '20. Our consolidated revenues stood at INR 19,454 crores vis-a-vis INR 21,951 crores last year, lower by about 11%. We registered a net loss of INR 70 crores in FY '21 as against a net profit of INR 460 crores in FY '20. In Q1 FY '22, our revenues grew by 353% year-on-year to INR 2,951 crores vis-a-vis INR 651 crores for the same period last year. Our EBITDA grew by 58% with respect to the same period last year. Our net loss was INR 282 crores vis-à-vis INR 389 crores in quarter 1 FY '21. In quarter 1 FY '22, our revenues grew to INR 4,088 crores vis-à-vis INR 1,486 crores during the same period last year. Our PBT grew by 39% with respect to the same period last year. And our net loss was INR 252 crores, vis-à-vis INR 389 crores in Q1 FY '21. Rock solid and yet resilient. Our vision is one beyond numbers, one of true leadership and a purpose that binds the organization to be a top 10 global commercial vehicle player. Our focus is on differentiation and reliability which will set us apart. We aim to deliver outstanding stakeholder value. You're all aware that Ashok Leyland is a well-respected brand with a legacy of innovation that has led to several industry firsts. We are passionate and customer-centric with our products and services, true to our philosophy of Aapki Jeet, Hamari Jeet. Our AVTR range of trucks with the iGen6 technology is modular and offers superior performance and reliability. Our vehicle configurator allows customers to build trucks as per their needs. The response to AVTR has been heartening with customers experiencing excellent operating cost benefits and lower total cost of ownership. We will continue to develop on the strengths of the modular platform as well as BS-VI performance and value sell our products. The modular platform, an industry first, has meant that our company could launch several new products across segments, despite the pandemic. The new products have helped address several applications. Our company has been delivering fully built solutions as per the needs of our customers spanning across segments. Our FBS solutions offer superior build quality and higher durability, complementing the reliability and performance of the AVTR platform. Our company is the market leader in MHCV buses in India and the fourth largest bus manufacturer in the world in volume terms. The commonized bus platform has led to a homogenized design philosophy. We've recently carved out a subsidiary, which for buses and coaches, to manufacture fully built buses in Alwar. This, along with Global TVS in the South, will help us deliver more fully built solutions to our customers. The LCV segment grew exponentially, thanks to the increasing popularity of the hub-and-spoke model and the need for last mile connectivity in e-commerce. In LCVs, we will continue to grow our addressable market in the years ahead. Our Stallion has been the face of our armed forces mobility for decades. We have over 70,000 Stallions in operation, a matter of great pride for all of us. Today, apart from logistical vehicles, we offer a host of mobility solutions for combat support, armored light specialist range, et cetera, making us an end-to-end mobility solutions provider. We aspire to offer differentiated mobility solutions to our armed forces in the future. Our Power Solutions business caters to various nonautomotive business applications, power generation, agriculture, industrial and marine. Revenues of our PSB business have gone up 1.5x over the last 5 years and will continue to grow in the years to come. Our network of touch points covers the entire length and breadth of the company. We've created different formats of touch points, cleared sales and service, authorized service centers, container workshops, mobile workshops for better flexibility. International operations is critical to our expansion story and for realizing our vision. We've targeted expansion in 5 clusters in the next few years. Our presence in SAARC and GCC is known. We are making deeper inroads in these geographies. We are also expanding our footprint in Africa. And in the future, we will target the CIS and ASEAN as well. We wanted to give you a glimpse of our journey in Africa over the last 2 years. Our company has been executing project sales in the past. Retail, we believe, is going to be an important driver of growth. To penetrate in the retail segment, capable partners have been onboarded. These are sons of the soil, have automotive experience, are well connected and are of strong repute, can scale up network. With this foundation, our company will grow its presence in Africa in not just in terms of products and network, but more importantly, service and spares. Our digital core was built in 2012 when our business process moved to SAP. Our digital team has been offering differentiated digital solutions to our customers, iAlert, ServiceMandi, Leykart and eDiagnostics. We believe that artificial intelligence, blockchain, cloud computing and data analytics are going to transform the businesses of tomorrow. Our company aims to create a unified digital platform for our fleet owners and value chain stakeholders in the logistics ecosystem, and we will sustain a lifetime engagement with our customers through the platform. Our digital initiatives, iAlert 3.0, AL Care, Uptime Solution Center have helped us gain insights and understand customer expectations. AMCs, Recon and insurance have helped establish a competitive edge. Today, our company is serving customers through prognostics and Firmware Over The Air, FOTA, setting new benchmarks in the industry. Aftermarket will remain a key differentiator in enhancing customer lifetime value. People are the foundation of this great organization. Our organization fosters a diverse and inclusive environment, ensuring equal opportunities to all. A culture of appreciation, respect and joy go a long way in keeping people aligned to the purpose, while driving high performance and empower them. Our commitment to sustainability is encompassed in our products and services with ESG as the cornerstone. Our passion for sustainable engineering is at the core of our work on alternate fuels, alternate material technology, connected vehicles. In order to streamline our focus, we found an ESG Committee, headed by an independent director on the Board with global experience. Economic growth and natural resource conservation will help support strong economies and healthy societies and needs to be balanced. Our initiatives towards carbon footprint reduction, approximately 60% of our power comes from renewable resources and positive water balance. We have approximately 7 lakh trees in our manufacturing units. These are aimed at ensuring that we preserve the future. Our Road to School program started in 2015, and that's extremely close to our heart. And today, over 800 schools with over 70,000 children benefit from the scheme. The focus in the years ahead will be on quality and holistic education. Ready for the future. Powertrains today are predominantly driven by IC engines, diesel and to some extent, CNG. Over the next 2 decades, we would witness alternative powertrains, battery electric vehicles, fuel cell electric vehicles penetrating certain segments. While we are witnessing growth of battery electric vehicles, hydrogen powertrains are likely to gain traction. However, we believe internal combustion engines will continue to stay relevant and coexist with the alternative powertrains in the near and midterm future. IC engines will continue to serve several non-emissionized markets, nonautomotive applications and long hauls. Different vehicle segments will follow a different trajectory on fueling technology. LCVs and ICVs will most probably move towards EV and CNG. LNG and hydrogen powertrains are likely alternatives for MHCV. While it is still early days, we will witness trends emerging. In buses, EV and CNG will form significant volumes by the end of this decade. MDV buses may take the LNG and hydrogen powertrain route in the long haul. Our company is working in all these areas and exploring partners wherever necessary. The building blocks of an EV ecosystem include vehicle OEMs, suppliers, channel partners, customers, banks, financial institutions and the government. Digital platforms will be turbocharging the benefits for the ecosystem through the concept of a data marketplace. We aspire to create differentiated connected solutions for our stakeholders. Our company has created a dedicated global EV-only entity called Switch Mobility, combining the capabilities of Optare in the U.K. and EV division at AL. The entity will benefit from the synergies of Indian and British design, frugal engineering, cutting-edge technology and sourcing advantage, while remaining innovative and nimble-footed like a startup. The U.K. headquarters provides proximity to geographies expected to adopt and transition into EV faster, while manufacturing at India and U.K. offers flexibility. Switch would play a key role in democratization of zero carbon mobility. OHM Global Mobility will offer eMaaS, eMobility as a Service, solving the most critical issue impacting large scale deployment of EV, that is a higher upfront CapEx. Through flexible pay-as-you-use business models and end-to-end customer-centric solutions, OHM will drive faster adoption of EVs. Our vehicles have clocked over 26 million miles, including 2 million miles in India. To conclude, our company is set to move faster, aim higher and achieve greatness. And I would like to end my presentation by thanking the Chairman and the Board for their guidance and support. And thanks are due to all of you, our dear shareholders, for your faith and for staying invested in the company. Keep safe and [Foreign Language]. Thank you.

Thank you, Vipin. Before I take up the questions and comments from shareholders, Mr. Ramanathan, Company Secretary, will explain the electronic voting process and other matters.

Yes. Good afternoon. In compliance with provisions of Section 108 of the Companies Act, 2013, read with Rule 20 of the Management and Administration Rules, 2014, the company had provided a remote e-voting facility to its members for the businesses proposed in the Annual General Meeting notice through National Securities Depository Limited platform. Remote e-voting commenced on Saturday, September 4, 2021, at 9 a.m. Indian Standard Time and ended on Tuesday, September 7, 2021, at 5 p.m. Indian Standard Time. The company has appointed Ms. B Chandra & Associates, practicing company secretaries, as scrutinizer for conducting the e-voting process in a fair and transparent manner. Members who have not cast their votes electronically and who are participating in this meeting will have an opportunity to cast their votes during the meeting through the e-voting system provided by NSDL. Members can click on Vote tab on the video conference screen to complete the voting. The auditor's report on the stand-alone and consolidated financial statements and the secretarial auditor's report of the company for the financial year ended March 31, 2021, do not contain any qualifications, observations or comments or other remarks on financial transactions that has an adverse effect on the functioning of the company. Accordingly, the reports are not required to be read out as per the provisions of the Companies Act, 2013. Thank you, Chairman.

I now invite comments and questions from the speaker shareholders only relating to the performance of the company. With a view to afford adequate participation to the other shareholders, I request members who have registered with the company to be as brief as possible, not to repeat questions and raise questions only pertaining to the affairs of the company. I request the speakers to take 3 to 4 minutes for their questions.

[Operator Instructions] We take our first shareholder, [ Priyadarshan Naik ].

I was very happy to hear the speakers, the Chairman and also the MD. I know this has been a very bad year, the COVID pandemic, but I also see reasons for joy. One of the key things I feel extremely happy about is your AVTR, your AVTR range of modular trucks with the BS-VI emission conformance. I think that's a commendable thing. Your digital next, your iAlert telematic solution, that's another thing that's going to take our company very far. Congratulations. I think this has been a splendid effort. Thank you also for the dividend. I have 3 questions, and I will be -- just take 2 or 3 minutes. The first one, let me take you to Page 122 of your stand-alone balance sheet, point 1.2, note 1.2. Why have your noncurrent provisions with respect to product warranties increased by almost 50%, 48.5% to be precise. What long-term issue do you see will affect the performance that requires these sort of provisions in warranty terms? In fact, if I look at your exact warranty spend compared to last year, in fact, there's a 63% downtrend. So what is this reason for fear? Perhaps somebody from the R&D department would like to take on this question and reassure us that these product warranty provisions, the noncurrent provisions, are no -- there are no long-term issues. That will be very reassuring. My second question takes you to Page 263. I counted 12 subsidiaries. What was particularly painful is that 4 of these, that's 33%, are loss-making. And the losses are huge. Optare, for example, is INR 155 crore loss. The balance companies, which are making profits, are making petty profits, INR 1 crore, INR 2 crores just here and there. So my question is, isn't somebody from the Board giving an overview why are -- why is Ashok Leyland allowing all these subsidiaries to get away with losses? What exactly is the issue? What is the problem, which brings me to my third question. I have been reading newspaper reports that Ashok Leyland is a very prominent player in the BEML disinvestment process. It's a very prestigious disinvestment, and I would like to applaud the fact that Ashok Leyland is participating. With your defense unit, there's perfect synergy. I saw the CBUs, almost 1,000 of them. Your Stallions, your water bowsers, bullet-proof vehicles, casting, even your defense associate company, I think there's been a 68% growth. So with BEML, you are going to get a wonderful synergy. I have no doubts about that. But BEML also has 2 other verticals, the rail and metro and also the mining and construction vertical. So my question is, what are your plans for the balance 2 verticals of BEML. These are my 3 questions. I'm sure you will have such a dynamic and a fantastic team, as you all have with people and the members of the Board and the Chairman. I'm sure you're going to have a wonderful next year, and I look forward to congratulating you for the figures as well. Good luck. Bye-bye.

[ Mr. Naik ], thank you. I will respond to all the questions at the end. We're noting them all down. And once all the speakers are finished, I will respond to all of that.

Our next shareholder is on an audio call, [ Bharat Raj Kanakala ].

Chairman, Mr. Managing Director, entire Board of Directors, I'm happy to see you all safe, healthy, fine and -- in this AGM. Sir, first of all, I thank the management in this pandemic also, you have done very good, sir. I congratulate the management for working hard. And I know that in this situation, there is no issues to ask, but even though, sir, in this pandemic, my company has done very good CSR program. And in this pandemic also, you're very generous, Mr. Chairman. I appreciate you [ giving ] INR 0.60 dividend even though my company is losing, sir. I'm very happy, sir. The way you're treating the shareholders, I'm very happy [indiscernible] to the shareholders, sir. Sir, my question is, in this pandemic, you have provided all vaccinations to the shareholders, any death calamities? And how many -- how you handled the death calamities, sir, to the employees, sir? Sir, one more I want to appreciate is the front page, sir. The wonderful front page design by secretarial department, sir. I thank Mr. Ramanathan for doing a very good annual report. Thank you, Mr. Ramanathan, for arranging a very good virtual. Sir, Mr. Ramanathan is always accessible 24x7, thank you. Sir, once again, sir, this is -- I'm very concerned about the electric vehicle, sir. Sir, next 10 years, our country is very serious to every vehicle should be electric. Sir, how do you come out with solutions, sir? How do you come out with diesel engines and petrol engines, what is the future plan, sir? The world is looking for electric vehicles, sir. Tesla is coming into India. Hyundai is coming. Everybody is coming into the electric vehicles. So how you're -- think for the 10 years, I'm not looking for now. You look for the 10 years and 15 years, how you face the challenge? That is very important, sir, because I believe your leadership, sir, because since 5 years, my share price is appreciated. I received dividends, and we believe your leadership, sir. What you take the initiative, always supportive sir. We are always with you. You have a very good managing director here and a very good team, sir. And once again, I support all the resolutions. And I'm happy that first bus has been released in the Vijayawada plant, where in this, with the state problems also, you have released the bus of the -- from the Vijayawada plant. I'm very happy, sir. Do you have any plans to open any new plants in all over India, any future plants for electric vehicles? Are you interested into start the manufacturing of the lead battery sir? Because we are in a -- we are in each -- every segment. Are there any plans to enter into the battery -- electrical battery manufacturing also because Amara Raja Batteries want to establish a big plant, a gigafactory for electrical batteries. So why not we enter -- we also enter into the battery segment, sir? Once again, Mr. Chairman, thank you very much. I believe your leadership. And I'm from Hyderabad, sir. I met you in the physical AGM, sir, because we enjoy the physical AGM under your sir. And with me Mr. [ Reddappa Gundluru ] and [ Ramesh Golla ] also came and visited you. Unfortunately, they are not registered as a speaker. They asked you to -- wish you and convey the best wishes to you, sir. Once again, all the best, sir. Take care, sir. God bless you all, Mr. Ramanathan. God bless you, all.

Thank you.

We take our next shareholder, [ Jaydip Bakshi ].

Myself, [ Jaydip Bakshi ] connecting from the City of Kolkata. Thanks to the Company Secretary, Mr. Ramanathan, for giving me an opportunity to express my views. Sir, you have presented a good presentation in the beginning, which has highlighted with the present and the future of our company. Sir, I would be very much happy to have a hard copy if you have ever published one in this -- of this Ashok Leyland. Sir, proud also to be part of the leader in commercial vehicles with new innovations everywhere. Sir, what is the present capacity utilization of the plants, which you are running at present? And regarding there was a news of the shortage of the semiconductors, how much has this affected our business? Sir, any plans for entry into the light duty range? Sir, how much has been the effect of this raw material price movement in our product cost-wise? And this R&D team has been doing a good in this fuel efficiency and the vehicle performance. What is our thought process for the emission and the safety ride and also for the ride comfort in this aspect. What is the thought process regarding this? Do you think this -- how much does it affect in our price factor? How much does it affect us? Congratulations to the awards which we have received. And also thanks for the dividend which you have passed on to us. Sir, how -- kindly highlight on the subsidiary losses. Why are they going off with many losses? Sir, what is -- and also for the CSR activities, I'll always be great as ever. And sir, kindly highlight, sir, on your waste recycle and the carbon neutrality program. Sir, nothing to add more. I hope we get a chance for a factory visit if the conditions improve in the coming days, in the near future. And also for this video conference, this helps us get connected from Kolkata because we don't find time to travel to your place and deliver our speech. And this video conference serves us to get connected with you, sir. I hope under your leadership and the group and entire Board will take our company to greater heights and will deliver better results in the coming days. Thank you, and all stay safe, sir.

Thank you.

We take our next shareholder, [ Santosh Kumar Saraf ].

I am [ Santosh Kumar Saraf ], [Foreign Language] I want to express my condolence to those people and those employees who left us in the COVID time. I pray to God, give them [Foreign Language] and also pray to God to give their family, to help, to come out from these hard times and lift them, sir. I also thank the secretary for giving me opportunity and provide me the link very advance, sir. Sir, my 3 to 4 short questions are here. What is your CapEx plan for the next 2 years, sir? And what is the today order book at present sir -- order book at present? And what is your plan to enter in electric vehicles, which is the future of the world, sir? Sir, what steps you are taking for rain harvesting and recycle or reuse and use -- reduce fresh water, sir? And sir, what steps you have taken to increase renewable energy sources and what is the present capacity of our renewable energy source? Sir, our employee and casual employees, including their family, are vaccinated. Could you tell me percentage and what step you've taken to 100% vaccinate at earliest to fulfill our Indian dream, sir? Sir, what steps you have taken for reduce single-use plastics in our factory, sir? Sir, last I want -- because like going ahead, please give empowerment more and more female employees in our factory, sir. There is -- if woman empower and then our country will be empowered, and our social life will empower and our children also empower and improve their lives, sir. I think women have been more powerful than since past. They are winning silver medals in the weightlifting. They are winning medals in boxing and also winning medals in wrestling, also in the playing, sir. So I hope that you will give a chance to show their honor in the company, sir. Next and last is also a request for disabled employee, to increase the percentage of disabled employee in our factory, sir. I think disabled also is capable if they get a chance like general people, sir. In the just finished paralympics, sir, India, disabled people picked 19 medals for India and placed a high morality to Indian people. So I request to give also them the empowerment. Last, sir, once again, I wish Mr. Dheeraj Hinduja, Chairman, and all our directors and all our capable persons and employees for their -- along with their families, for long life and happy life in the year -- financial year 2022, happiness, wellness and prosperity, sir, be happy, I wish to God. Thank you for giving opportunity. Lastly, I request that video conference meeting will continue after 31st December, if possible, sir. If you held physical meeting, we have no objection. But sir, I request you, 15 to 20 minutes session for pan-India shareholders, if you give a time, then it will be great. Jai Hind. Jai Bharat. Once again, my [Foreign Language] to all our directors and dear friends, sir.

Thank you.

Our next shareholder is [ Bharati Saraf ].

Can you hear me, sir? Am I audible? Am I audible, sir?

Yes, you are.

Yes, we can hear you.

Trust all is well with you and your family in this challenging situation. Our company deserves much more respect than the current market cap after completing more than a decade of successful operations, profitability, dividend history and becoming one of the strongest brand in our respective segment. Sir, I would like to know how our business has been impacted in these past 2 years of this COVID time? Where you see the light in the end of the tunnel? And what will be the growth figures in the first half and the second half? Our best wishes for the management on the eve of the 72nd Annual General Body Meeting. Sir, we are marching towards the 75th year, and the shareholders are having a lot of expectation from the management. Hope the management will be declaring a bonus issue in the 75th year, so I would request the management [indiscernible] so that you shall be in a position to declare a liberal bonus to the investor fraternity on the eve of 75th Annual General Body Meeting. So the coronavirus and the subsequent lockdowns have left virtually no industry untouched after the COVID. Sir, any employees have we sacked? How are salary cut in percentage if any? And any salary cut was being taken by the management during the pandemic time? What are the cost-cutting initiatives done by the management, sir? And what is the view of the management? Going forward, sustainability of the profit earning growth will remain challenging in the coming quarters. Sir, what are the management efforts to reduce the other expenses, legal, professional charges and the audit fee? Sir, I would request the management to kindly take part in con call, quarterly presentation and meeting with global investors on a regular basis. Sir, we are the market leaders today in the heavy vehicles. So I would request the management to kindly take part in the con call. Sir, we have done a very good amount of CSR. We do appreciate the amount of CSR being done. I request the management to kindly dedicate as much as CSR towards the COVID pandemic so that the world can come out of this crisis as soon as possible. Sir, since -- I thank the Company Secretary and the entire team for conducting this Annual General Body meeting virtually and making this 72nd Annual General Body meeting a grand success. Sir, there's a small request from other minority shareholders, who are not able to participate in this digital platform due to the challenges in this digital virtual AGM. So for the past 2 years, we are not able to meet you physically, and we are forced to meet virtually. So shareholders request that hospitality part to be taken care by the management as it is being done in the physical Annual General Body meetings. So I would request -- because our slogan is there, Aapki Jeet, Hamari Jeet, but what shareholders say, in these past 2 years, we cannot see, [Foreign Language]. Basically, [Foreign Language]. Nothing much to add, sir. I wish the company and the Board of Directors a great success and prosperity in the coming future.

Thank you.

Our next shareholder is [ Mahesh Kumar Bubna ].

First of all, I congratulate to the Chairman that he had joined, maybe he joined from U.K. So first time I'm meeting with all the directors and other dignities due to this video conferencing. I'm a resident of the City of Joy. But now I am in Bengaluru. Before the pandemic, I came here and I lived here and still I am in Bengaluru. So this pandemic has come after 100 years. After a century, this pandemic has come. When in 1903, this swine flu has come, which -- it continued for 5 years. And this COVID-19 is for the last 1.5 years, it is continuing. Third phase is already a lot in India, in Kerala and other parts of the country. And it will spread out the entire India. And people are suffering and our business, industry are suffering very huge. This new variant will also come, some Mu, M-U, Mu variant will also come. And there is also one news that this COVID-22 will also come with a mixed variant, which is much more dangerous than COVID-19. And it is a very serious situation for the industry to look forward for the safety of our people, who is the fourth pillar of the industry. And we must have to take care of -- besides the permanent employee development, we must also take care of our casual employees, casual workers because where they will go to take the help and vaccination, et cetera. So they are working with us. So we must have to take care of their financial relief also. Sir, our Indian -- this life is changing rapidly. A lot of vehicles, large, are coming everyday. And this -- there is a limit declared by the Government of India for 15 years is the lifetime of the -- any vehicle. Thereafter, the vehicles would be scrapped. So this is a overburden to the consumers. Another thing that our companies, I have not gone through the annual report, I am not well. Only I have seen the highlights of the annual report. Our borrowing is high and our financial cost is very high. And if you see, you incurred the operating loss and you are paying dividend, even you are paying dividend out of the capital reserve. So it is not very good. If you see the last year capital reserve and this year capital reserve, there is no -- you had come with the right issue, last right issue, that time you come with INR 50 -- sorry, at a rate of INR 60. And that time, market come down to INR 40. Today, I am holding 4,500 shares. I had applied full -- even I applied more than my right. So if you get the history of your market price for the last 20 years or 30 years, your maximum price gone to not more than INR 100. Now it is quoting INR 120. If you see the -- only the tire manufacturing, tire manufacturing company, MRF, their share price, INR 10 share price is INR 1 lakh. That's INR 1 lakh. So you are compact manufacturing vehicles, trucks. So when our share price will go to INR 1 lakh. If you compare with INR 10 and INR 1 value, then when your share price will go to INR 25,000. I'm a lawyer. My maximum shareholding in your company only 4,500. So I am a company law practitioner for more than 45 years. So I am a shareholder of most of auto companies. So there is a lot of competition in the market, I understand. And the cost of the -- fuel prices, diesel and petrol prices are at sky high. And a lot of people are discouraging to use vehicles unnecessarily. And the transportation cost is going high. So it is a very bad situation. And in the future, there is no hope to improve. The competition is also very high. Tata is also there. Eicher is also there. A lot of other companies are also there. But Ashok Leyland is also a very reputed company, old company, worldwide and is competable with any other companies in India and abroad. We must have to try to export our product to other countries like -- advanced countries like U.S. and Britain and Japan, et cetera. Then we can able to cope with our profitability and enhance our margins. If you go to the other neighboring countries, Nepal, Bangladesh, et cetera, then also we can enhance our sales and productivity. Then the microeconomic facility -- benefit we can able to achieve. Sir one thing, I'm very upset with connecting on the telephone. The security guard has picked up the phone, and he's saying that I cannot able to transfer the line. I'm in the ground and people are sitting on every tower on the top of the building. So I discouraged. Then again and again, I tried. Then once I got the receptionist, she connected with Mr. N. Ramanathan. I requested him to why the company is not providing mobile number. Landline is now obsolete. It is a 20th century thing. Now 21st century, the mobile smartphone are also using, people. And now again, very rapidly fast changing, the science. So...

Excuse me, this is the operator. I'm sorry to interrupt Mr. [ Bubna ]. Sir, we are -- you've exceeded the 3 minutes time window that was allotted.

[ Mr. Bubna ], we've -- I have, of course...

First time I'm speaking with you. I'm not -- shareholder. I never attended the AGM. This is the time I -- last year also, I have not attended. Just a minute, please.

Sure. We've understood the issue with regard to the mobile numbers. If you could tell me which are the other specific questions that you would like to be answered.

Sir, your video and presentation, everything. What new technologies are advancing? Are you adopting the -- this sensor system in our vehicle, like camera system -- camera sensor system so that the driver can able to see backside, side -- both the sides, so that he can able to drive the vehicle very smoothly and there is no loss for the accident. And more worthy that the sensor in the tires, that how much the depreciated value of our tire, if the tire will scrub in the road, it will -- road will also jump and our business will be impacted. So driver must know that how much depreciation and value of our tires. So the sensor must be -- we must have to adopt the new technology which is in the America and other European countries adopting. So it is also a very important question, I'm telling you. And try to improve the market capitalization. When Sensex already started -- when pandemic started, Sensex was 23,000. Now it is more than 58,000. When our share value will be enhanced. Your share value is like 12,000 Sensex. So when we will expect a better result? When we will expect the bonus? When we will able to make our heads high as a good investor in a multinational company. With this remark, I will not tell you much more. I'm not well. Only first time we're meeting. I'm also a legal practitioner for the last 45 years. All companies knows me. All these promoters knows me worldwide. All multinational companies knows me.

Thank you [ Mr. Bubna ] for your comments. I'll respond to that. Thank you.

We'll take our next shareholder, [ Suresh Chand Jain ]. Excuse me, this is the operator. Mr. Jain, we cannot hear you. Request you to unmute your line, please. We have lost the connection for Mr. Jain. We take the next question from [ Vasudha ].

Hello.

Yes.

Can you hear me sir?

Yes, we can hear you.

Myself [ Vasudha ] from Bombay. I would like to congrats our Company Secretary for sending with a soft copy of the report well in advance, which itself is clear and transparent. I will ask as follows. For next 3 years CapEx plans, what is [indiscernible]. I would like to notice you that [indiscernible] Investor Protection Fund. I would like to suggest that please take more efficient efforts to avoid this huge amount of the hard and fast money of the shareholders for transferring to IPPF fund. Further, I would like to suggest it is -- can it is possible to send us the physical copy of the report, as the senior citizen [indiscernible] I support all the resolutions. Wish the company all the best for coming financial years. I would like to give my best wishes for coming Ganapati festivals as well as Dussehra and Diwali festivals.

Thank you.

We take our next shareholder, [ Subhendu Sanyal ].

Am I audible?

Yes. You're audible.

I'm [ Subhendu ] from Kolkata. Without wasting much time, I'll come straight to the queries. Sir, what is that with regard to the CSR funds, CSR expenditure, the obligation of the company was INR 34 crores, but whereas the company spent only INR 30 crores. I would like to know the reasons for the shortfall of CSR expenditure and how the company would like to spend the remaining amount? Next, sir, I found that the company is primarily located in South India and the plants of the company are located in West of India, South of India and North of India. But whether the company has any plans to foray into the East and Northeastern sides of India, like whether the company has a plan of opening plants in the eastern and northeastern sides of India? Next, sir, the company is primarily in the B2B segment with regard to the manufacture of various vehicles. Whether the company has any plans of foraying into B2C by manufacturing -- by entering in the car segment? And finally, sir, whether the vehicles manufactured by the company are RFID, that is RFID-enabled because it helps to track the vehicles easily. So that's all I have the queries. I thank the secretarial department for giving the opportunity to ask my queries.

Thank you.

We take our next shareholder who is on an audio call, [ Suresh Chand Jain ].

Hello.

Hello, we can hear you.

[Foreign Language]

Yes sir, we can hear you.

We can hear you.

[Foreign Language]

[Foreign Language] You may proceed.

[Foreign Language]

Thank you. [Foreign Language]

That was the last shareholder in queue. Over to you, sir.

Okay. Dear shareholders, thank you for your comments and views. And I'm glad many of you have gone through the annual report in detail as well. I will start with, there were, of course, some common questions, which I'll respond together. But to begin with, with regard to the provisions for the warranty. If you look at the total amount, it in fact lower at INR 250 crores versus INR 312 crores that was in last year. One of the concerns I think a few of the shareholders have expressed are with regard to the subsidiaries and what are the actions being taken for these subsidiaries. As we have said in terms of our long-term plan, the -- Ashok Leyland is looking to grow and to make -- and we want to make sure that we are firmly in position for addressing any changes within the market. Optare as one of the concerns that was expressed. In fact that same company where Ashok Leyland has invested over the last 10 years, today is seen as a very valuable asset for the company because of its electric vehicle assets. And as you would have noticed in my speech and also Mr. Sondhi's presentation, the company is very much ahead of the game, I would say, in electric vehicles. We have 280 buses already running between the U.K. and India. You might think that the numbers are not very high, but compared to many large OEMs as well, I think we are well positioned to take a lead in this. And also in the LCV, we will be launching our light vehicles. They are in customer trials at the moment, and we hopefully will get them into productionization in Q1 of 2022. But the other subsidiaries as well, I'm glad to report that despite the pandemic, Hinduja Leyland Finance continues to do well. They have reported good profits even during this last year. And even during the first quarter, they continued to move well. If you look at most of the subsidiaries which were a concern in the past, they are either at breakeven or they have a strategic position for the company's growth prospects for the future. There is a greater requirement for fully built vehicles as a result of which the company has moved in that direction with the new plant in Alwar as well. So I would like to reassure you that the Boards, the directors and the management are very much focused to ensure that not only the core business, but each and every subsidiary of the company is not only well managed, but has a clear business plan which they're measured against. And I'm sure in the years to come, as we have seen with some of the other subsidiaries, which have turned around, those 1 or 2 which require that additional effort will also reach and give us better profits in the years to come. There was a question with regard to the Ashok Leyland's involvement in BEML divestment. Yes, you're right. There are -- although there are synergies for defense, but we do not feel that it has the right opportunities for us. And there are media speculations with regard to this. We are not pursuing or participating in this divestment. With regard to our capacity utilization, currently, the plants for MHCV are operating at 50% to 75% depending on the various plants, whereas the capacity for LCV is literally close to 100%. The demand for light vehicles has been strong as a result of the growth in e-commerce and wherever required, we are doing a lot more of debottlenecking to ensure that we do not lose out on any sales. Again, the question with regard to electric vehicles and there was a comment made with regard to Tesla coming into the country as well. I will also respond to one of the last questions, whether we are looking at getting into car manufacturing. I would like to confirm that that's not the plan for the company. We are in light vehicles, ICV and LCV, including buses. We believe, as a Board that, that is the right segment, and that's where the core competency of the company is. So we're going to restrict ourselves to that level of activity. So in that context, we do not compete against Tesla directly, but the comment is very much true on electric vehicles, and as I just mentioned, there will be a huge transformation, which all governments are supporting, and there's the green agenda pursued by each and every country. We are following this very much. And we have, in our presentation, given you some details. But I'd like to assure you that the game plan for Switch, which is your subsidiary for electric buses and electric light vehicles, and also OHM, another subsidiary, together these 2 companies will be able to bring a greater penetration for Ashok Leyland even in countries where we do not sell today. One of the areas that we're going to be focusing on is Europe. And eventually post 2024, '25, we're looking at entering the U.S. markets as well. So I can assure you that the focus from Switch and Dr. Palmer, who is your -- one of your directors, is heading this company as the Executive Vice Chairman and CEO. He's very renowned in this area, and I'm sure you will be glad to see the progress we make in the next few years. With regard to battery manufacturing. This is an area which goes hand-in-hand with our electric vehicle ambitions. I would not like to disclose any plans at the moment except to say that, of course, Andy along with the team is very much looking at all the options with regard to this. With regard to physical copies for the annual reports, we will -- of course, due to the pandemic, there have been challenges in distribution. But if I could please request any shareholders who would like a physical copy, if you could please write to Mr. Ramanathan, and I'm sure he will arrange to have that sent to you. On the vaccination of employees, 82% of the executives and 72% of the associates have had their first doses. And this is an area which we are, again, very much focused on. You heard Mr. Sondhi explain how we're looking after the health and safety even with the operations of the plant. It is, of course, very difficult with the different strains to have full protection, but I can assure you, we are taking all the measures that all governments have recommended, medical experts with regard to distancing, wearing of masks and ensuring that any new instructions that come in, we follow those adequately. There was a question on the CapEx programs for the next few years. And I would like to assure you that most of the CapEx plans for the company have been fulfilled. We are not looking at anything significant over the next few years, although I should say that Switch and OHM, as your subsidiaries, they will have their own funding plans in place, and they will be conducting CapEx programs. But as far as Ashok Leyland, we are not seeing any major investments. In fact, wherever required, we're looking at debottlenecking. And in the same respect, there was a question with regard to our plants and expansion into the North and the East. I'd like to just clarify that while we have our plants in the South, we are also present in Bhandara in Maharashtra. We're also present in Pantnagar in Uttarakhand and also in Rajasthan, in Alwar. So we are well spread out throughout the country. We do not see any immediate requirement for new facilities to put in. But we appreciate your comments. If there are any -- if there is any thinking in this regard, we will look at other parts of the country we are not present. There was a comment by [ Mr. Saraf ] with regard to how can we increase the female participation in Ashok Leyland. We have about 350 executives in the company at the moment. As I have said in our previous AGMs, Ashok Leyland very much believes in diversity. And in that respect, we not only encourage more females to join, whether it's straight from college or through an apprentice program. In our plant in Pantnagar, we even have a hostel where they're able to work and they're able to study at the same time as well. So we fully agree with this comment. Automotive has not been a sector, unfortunately, which has attracted many women into this workplace, but I'm sure going forward, as we're seeing greater and greater strides by women in all spheres, Ashok Leyland also looks to diversify more and more. There was a request for a copy of the presentations that were given. These presentations are, of course, going to be uploaded on to the website. But again, if you do require hard copy, since they are quite extensive, I would request you to please write to Mr. Ramanathan and we will do as best to see what can be done. On the CSR shortfall, this was predominantly done because of the COVID impact. As you are aware, there are 3 areas that we're focused on: education, health, water. We have very extensive programs, and we have made sure even during the pandemic to make sure that the education doesn't suffer. It has been a difficult task, but I do feel proud of the fact that while many schools were shut, we were still able to continue our program for over 35,000 students out of the 50,000, 55,000 that we are interacting with. And the funds that were left over will be consumed with the programs that we already committed for. Of course, we are hit by the semiconductor issue as are all the auto companies around the world. And the issue is unlikely to get resolved immediately. But as we understand that the production from Q3 of this year is increasing. And we have taken all precautions, we're building up our stock, and we are, of course, in touch with all of our suppliers to see how production doesn't suffer. On the borrowing costs, Gopal, there was an issue with regard to the costs impact on the financials. Would you like to say something on this?

Interesting question. All I can assure the shareholders is that we have been managing our funds very astutely. And despite COVID year last year, I think the entire team from all functions have actually been ensuring that there is as minimal demand on working capital as much as possible, and we've also been able to manage on the CapEx investments, which were also kept very tight during last year. So the interest costs are -- the rates of interest that we have from our partner banks who've shown extensive support to us have also been, I would say, some of the best in class going forward. And rest assured, that we are trying to keep our interest cost as efficient as possible.

[ Mr. Bubna ] had mentioned about taking care of casual workers. I'd like to assure you that we take the health and safety of everyone working at Ashok Leyland very seriously. And this is looked at by Vipin directly and along with our COO. So please be rest assured, this is very much looked after. There were some -- not concerns, but suggestions with regard to improved -- how can we see the market capitalization of the company improved. This is, of course, not within our hands. We are focused on our results. And hopefully, once the auto sector is seen in better light, having overcome the material shortages and escalation of material costs, I'm sure you will see Ashok Leyland's performance, if not better, at least on par with any other OEM in India. In terms of technology, camera sensors, avoiding accidents, let me assure you once again, Ashok Leyland has been one of the innovators when it comes to introduction of new technologies. Whatever is required, whatever the customers would like us to introduce on our products, we will be the first to take a lead on that. We take technology extremely seriously, and I'm very proud over the last 15 years and more, we have always looked at being the introducers of new technology as opposed to being followers. With regard to the hospitality, I'm sure as all of you have recognized, it is much easier to provide this in a physical meeting and poses a lot of challenges with shareholders being all around the country. We are -- of course, we understand the 75th year of Ashok Leyland is also coming up and the requests from the shareholders for bonus shares. We will, of course, as always, the Board will look into all your comments and suggestions and do the best that we can. We -- personally I believe that the worst is behind us. The first wave, the second wave of this pandemic has allowed us to shift our production. We've learned new ways of working using technology. And I'm sure COVID will not be going away very smooth, but we've learned to live with this challenge and to work around this. So I'm quite confident, as I'm sure the Board and the management are as well, that quarter-on-quarter, we're looking to improve our results, our market share. And we hope for a very good 75th year, and we could reward the shareholders appropriately as well. I believe I've replied to most of the questions, but Vipin, Gopal, Ram, if there's anything left, if you'd like to take over, then please do so.

Mr. Chairman, no, I think you've covered everything. Just wanted to endorse that quarter-on-quarter, we will be better. And I can assure all the shareholders that under the guidance of the Chairman and the Board of Directors, the management team is focused as far as possible both on the immediate and the future to make sure that your company is -- continues to strive and do better and better.

Good. Well, I'd like to thank all of you for participating. I hope most of your questions are answered. The secretarial department will correspond on any remaining queries, if any. Please also feel free to contact the secretarial department at any time for any clarifications. The result of the votes cast through remote e-voting and the scrutinizer's report will be intimated to the stock exchange and [Audio Gap] website within 48 hours from the conclusion of the AGM. Shareholders can view the results from these websites. Members may note that the time period of 30 minutes will be available for voting on the NSDL platform, after which the meeting will stand closed. I would once again like to thank the members, extended family of dealers, suppliers, financial institutions, strategic partners and customers for their continued faith in us. I would also like to thank NSDL, Chorus Call, secretarial department, IT and communications teams for all they had for the smooth conduct of this AGM. I'll now conclude this meeting, and thank you all once again for attending.