Shares in electric bus maker Olektra Greentech surged 6% to £1,716 per share in intraday trading on Wednesday, October 23, after the company reported strong numbers for the September quarter. Ta.
The company announced its Q2 FY25 results after market hours on Tuesday, with consolidated net profit increasing by 156.50% to Rs 47.65 crore compared to Rs 1,857 crore in the year-ago period. Net profit for the June quarter was Rs 24,000 crore.
Operating revenue increased by 71% to Rs 524 million compared to Rs 307 million in Q2FY24. The electric vehicles segment, which accounts for 90% of the company’s revenue, increased by 75.21% year-on-year to Rs 482 million, while the insulators segment generated Rs 41 million.
Olectra Greentech stock also rebounded in August, rising 6% after six consecutive months of declines. Despite the recent gains, the stock is still 23% below its February high of 2,221.95 ₹2,221.95.
recent updates
On October 8, the company signed a contract to supply 327 electric buses to Himachal Road Transport Corporation (HRTC). As state governments increasingly introduce eco-friendly vehicles in their public transport systems, Olektra Greentech is actively participating in bidding processes initiated by various state transport units (STUs).
As of March 31, 2024, the company has received orders for 10,969 electric buses, and this number is expected to increase even further. According to the company’s FY24 annual report, by the end of the fiscal year, around 1,695 Olektra electric buses were operating on Indian roads, collectively covering more than 10 million kilometers every month.
The Indian electric bus market is experiencing rapid growth and will generate a revenue of USD 282.7 million in 2023. It is projected to grow at a compound annual growth rate (CAGR) of 18.2% from 2024 to 2030, potentially reaching USD 905.4 million by the end of 2023. According to P&S Market Research,
The State Transport Authority (STU) is expected to need around 370,000 buses by 2030, which will require significant infrastructure upgrades. Part of this transformation includes replacing approximately 35,000 older diesel buses with cleaner options.
As e-bus production and in-vehicle deployment continues to surge, Olektra is well-positioned to benefit from this growth trajectory.
In September, the Union Cabinet approved the ‘PM-eBus Sewa-Payment Security Mechanism (PSM) Scheme’. The scheme, costing a total of Rs 3,435.33 crore, aims to support the procurement and operation of electric buses (e-buses). ) by public transportation (PTA).
Disclaimer: The opinions and recommendations expressed in this article are those of the individual analysts. They do not represent the views of the Mint. We recommend checking with a certified professional before making any investment decisions.
