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Will have to take more price hikes to pass on higher material costs, says Ashok Leyland

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Gopal Mahadevan, CFO, Ashok Leyland said, the company will have to take more price hikes to pass on higher material costs.

Gopal Mahadevan, CFO, Ashok Leyland said, the company will have to take more price hikes to pass on higher material costs.
“Some of the pundits say that in the second half of the year we could see softening of steel prices. If that happens, it will be helpful for the industry,” he added.
Talking about business, Mahadevan said, “We want to ensure that we have a double-digit EBITDA margin for the full year. We have stated that as one of our core targets. We have long and medium-term targets about EBITDA margin, return on capital employed (RoCe) and debt to EBITDA.”
“We would want to ensure that we grow profitably, we also generate cash and also return highly on the capital employed. So all these aspects have to be factored in on performance,” he said.
On market share front, he said we have lost market share in the medium and heavy commercial vehicles (M&HCV) space because we abstained from giving discounts.