Progress against Heavy Odds

Progress against Heavy Odds Hansavivek ASHOK LEYLAND had to contend with a 25 per cent power cut from October 1972 and this was increased to 75 per cent in February 1973. On the removal of power restrictions in July last, production was stepped up to the ''highest level ever reached", to offset the loss of production in the earlier period. The effort proved successful and in the year ended September 197.3, AL's sales of Comets increased to 4,735 from the previous year's 3,651, of heavy vehicles to 495 from 197 and of industrial/marine engines to 523 from 186. Net sales were substantially higher and, with margins widened, gross profit more than doubled, even though over Rs 72 lakhs were provided for the full gratuity liability as at the year-end as against the actual accrual provided for in the previous years and also about Rs 62 lakhs were set aside towards royalty payable to the holding company based on the figures for the year apart from that paid on the basis of the figures for the previous year in accordance with the method hitherto followed. Borrowings were brought down by a crore of rupees and the ratios of inventories and wages to sales showed substantial declines over the year.