Ashok Leyland CEO projects double-digit growth in FY24 margins

Shenu Agarwal, Managing Director & CEO at Ashok Leyland

Ashok Leyland Managing Director and CEO Shenu Agarwal hopes his company will surpass a 10-percent-plus growth rate the commercial vehicle industry is likely to record in FY24.

"Ashok Leyland's market share is going up, so we will achieve a lot of operating leverage," Agarwal told CNBC-TV18, citing the company's FY23 growth trajectory.

"There is a focused effort on cost savings because we think that there's a lot of scope for efficiency improvement, even if FY23 was a record year for cost savings. And we can continue that momentum going into FY2024."

The company expects a double-digit growth in margins too. "We are looking at growth in every segment. A recent Crisil report suggests that MHCV truck industry would grow by 10-12 percent," he pointed out. The bus segment, according to the recent report, is likely grow 25-30 percent.

"We have enough capacity for the next 2-3 years. So, on the capacity side, we are not worried. However, there would be small capex investments into capacity, largely for augmentation of capacity or de-bottlenecking of capacity in certain areas," he said.