Ashok Leyland MD and CEO Shenu Agarwal told CNBCTV-18 the company is optimistic to clock a double-digit margin in FY24 — compared with 8.1 percent EBITDA margin in FY23 and 4.6 percent in FY22. He is hopeful that FY24 would be a good year for the commercial vehicles industry and that Ashok Leyland's growth would be faster than its rivals.

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In its fourth quarter results, the company posted a revenue jump of 33 percent to Rs 11,625 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) margin grew 210 basis points to 11 percent versus 8.9 percent in the same quarter of last year and a CNBC-TV18 poll of 10.2 percent.

The margin expansion was driven by moderating discounts and operating leverage during the quarter.

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Ashok Leyland has increased its efforts towards cost savings, which is enabling the commercial vehicle manufacturer to expand its market share. "There is a lot of scope for building efficiency," Agarwal said. "FY23 was a record year for cost savings and we want to continue this momentum in FY24 for material costs, manpower, overheads, etc."

The company is looking at healthy growth in every segment that it operates in. The bus category is growing on a low base due to the aftereffects of the COVID pandemic. According to a report by Crisil, the bus category is expected to grow 25-30 percent in FY24.

Average realisation per vehicle at about Rs 20 lakh grew 3 percent quarter on quarter. "The industry cannot continue operating at the current EBITDA levels given the investments in new technologies and alternative fuels," he said.

Agarwal is focused on growing its profits and not getting into a discounts game. He said that it shall work towards a better price realisation.

Nirmal Bang expects FY23 GDP growth at 7.2 percent. India's industrial output, as measured by the Index of Industrial Production or IIP, in March declined to 1.1 percent, data from the Ministry of Statistics showed.

Generation of electronic permits for goods transportation within and across states declined slightly from the record 90.9 million in March to a robust 84 million in April, marking the second-highest figure to date, official data showed.

Crisil expects the commercial vehicle industry to grow 10 percent in FY24 and 25-30 percent for the trucks segment.

Ashok Leyland stock was trading 2 percent lower on the exchanges at 11:30 am on May 24.

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