The electric bus manufacturer Olectra Greentech’s stock jumped 6% in intraday trading on Wednesday, October 23 to ₹1,716 per share following the release of the company’s strong September quarter financial results.
Following market hours on Tuesday, the company announced its Q2FY25 results. It reported a 156.50% growth in consolidated net profit to ₹47.65 crore, up from ₹18.57 crore during the same period the previous year. The net profit for the quarter ending in June was ₹24 crore.
Compared to ₹307 crore in Q2 FY24, revenue from operations increased by 71% to ₹524 crore. While the insulator segment produced ₹41 crore, the e-vehicle division, which accounts for 90% of the company’s income, increased 75.21% YoY to ₹482 crore.
In August, Olectra Greentech’s stock also recovered, rising 6% following six months of declines. Even with the latest increase, the stock is still 23% behind its peak of ₹2,221.95, which was reached in February.
The Himachal Road Transport Corporation (HRTC) awarded the business a contract on October 8th to deliver 327 electric buses. Olectra Greentech has been actively taking part in bidding processes started by different state transport undertakings (STUs) as state governments use more and more environmentally friendly cars for public transport.
The corporation had 10,969 electric bus orders on file as of March 31, 2024, and additional tenders are expected to increase this total. Approximately 1,695 of Olectra’s e-buses were operating on Indian roads by the end of the fiscal year, covering a total of more than 10 million km per month, according to the company’s FY24 annual report.
The electric bus market in India is expanding quickly; in 2023, it will bring in USD 282.7 million. According to P&S Market Research, it is expected to expand at a compound annual growth rate (CAGR) of 18.2% between 2024 and 2030, with the potential to reach USD 905.4 million by the end of the decade.
By 2030, it is anticipated that State Transport Undertakings (STUs) will need roughly 370,000 buses, necessitating major infrastructural improvements. About 35,000 old diesel buses will be swapped out for greener models as part of this transition.
Olectra is in a strong position to profit from the ongoing boom in e-bus production and fleetwide adoption.
The “PM-eBus Sewa-Payment Security Mechanism (PSM) scheme” was authorised by the Union Cabinet in September. The program, which would cost ₹3,435.33 crores in total, is designed to assist Public Transport Authorities (PTAs) in purchasing and running electric buses, or e-buses.
