Guru Focus –
Quarterly revenue: 523.6 million yen, a 70% increase from 307.16 million yen in the second quarter of last year. EBITDA: 8.569 billion yen, an increase of 90% from 45.06 billion yen in the second quarter of the previous year. Profit after tax (PAT): 476.5 billion yen, an increase of 15.6 billion yen Non-consolidated sales: 51.47 billion yen, a 73% increase from 297.87 million yen in the second quarter of last year. Non-consolidated EBITDA: 83.24 billion yen, an 88% increase from 44.19 billion yen in the second quarter of last year. Standalone PAT: $48.2 million, an increase of 130% from $20.99 million in the second quarter of last year. Electric vehicles delivered: 2,217 units. Orders: 10,503 buses after delivery of 315 buses in the second quarter of 2025. Release date: October 25, 2024
For a complete record of financial statements, see Complete Record of Financial Statements.
good points
Olectra Greentech Ltd (BOM:532439) achieved record quarterly revenue and profit after tax, with revenue up 70% compared to the same period last year. The company delivered 315 electric buses in the second quarter of 2025, with 10,503 buses showing solid demand. Olektra Greentech is expanding its manufacturing capacity with a new state-of-the-art factory, which is partially operational and contributing to current production. The company aims to deliver 1,500 buses in FY2025. Olectra Greentech Ltd is undertaking localization efforts to reduce costs and improve profit margins, which currently stand at 15.6% for the quarter. Negative Points The company’s accounts receivable is high and currently has approximately 5 months of accounts receivable, but efforts are being made to reduce this. There is uncertainty regarding the delivery of 5,000 buses by March 2025, and conservative estimates suggest that the figure may be lower. Olectra Greentech Ltd faces challenges. Competitive bidding process as seen in the failed Chennai bus tender. The insulation business is growing more slowly than the electric bus division, and there are currently no plans to separate it. The company relies on foreign technology for certain parts. There may be risks given geopolitical tensions. Q&A Highlights Q: Can you clarify E Vran’s business, specifically the revenue and net profit from the delivery of 10,250 electric buses?
A: B. Sharat Chandra CFO: Revenue will be roughly what you said. The Company manufactures and sells buses for E Vran and recognizes revenue at the point of sale. The annual revenue from maintenance services is also around INR 5 per kilogram, with a net profit margin of around 15%.
Q: Did Olektra participate in the Chennai bus tender? If so, why did the tender fail?
A: B. Sharat Chandra, CFO: E Vran participated in the bid. This decision was based on a variety of factors, including technical specifications and project metrics. We cannot comment on the exact reason why we were not successful in winning the bid.
Q: How much volume do you expect in the second half of this year and is the new facility fully operational?
A: B. Sharat Chandra CFO: We plan to introduce around 1,000 buses this fiscal year. The new facility is partially operational and has been transitioned from the older facility to meet current capacity needs.
Q: What is the outlook for profit margins and volume targets for the next few years?
A: B. Sharat Chandra CFO: We expect margins to stabilize at around 10-12% as volumes increase. The company is targeting 2,500 to 5,000 buses in FY26 and more than 5,000 buses in FY27, and aims to complete its current orders within the next two fiscal years.
Q: Are there any plans to spin off the insulator business or fund chip debt?
A: B. Sharat Chandra CFO: At this time, there are no plans to separate the Insulator business. We provide chips based on actuarial valuations and may consider funding debt in the future.
For a complete record of financial statements, see Complete Record of Financial Statements.
This content was originally published on Gurufocus.com
