Olectra Greentech Q2 FY25 results

Olectra Greentech’s Profits Skyrocket: How the Electric Bus Boom is Driving Q2 FY25 Success

Olectra Greentech, a leading electric bus manufacturer, is making waves in the industry with a remarkable 156.5% increase in consolidated net profit, soaring to ₹48 crore compared to ₹19 crore in the same period last year. This follows a net profit of ₹24 crore in the previous June quarter, indicating a consistent upward trend.

The company’s e-vehicle division, which accounts for a substantial 90% of its revenue, witnessed a staggering 75.21% year-on-year growth, reaching ₹482 crore. With the increasing demand for sustainable transport solutions, Olectra Greentech’s stock surged 6% in intraday trading on October 23, climbing to ₹1,716 per share after the release of its robust Q2FY25 results.

Key Financial Highlights

In the latest quarterly report, Olectra Greentech reported:

Consolidated Net Profit: ₹47.65 crore, a 156.5% increase from ₹18.57 crore YoY.
Revenue from Operations: ₹524 crore, marking a 71% increase compared to ₹307 crore in Q2 FY24.
E-Vehicle Division Revenue: ₹482 crore, highlighting significant growth in the electric vehicle segment, while the insulator division contributed ₹41 crore.

Despite the recent uptick, shares of Olectra Greentech are still down 23% from their peak of ₹2,221.95 reached in February, indicating potential for recovery as the company continues to innovate and expand.

Recent Developments

Olectra Greentech is not just resting on its laurels. On October 8, the company secured a significant contract to supply 327 electric buses to the Himachal Road Transport Corporation (HRTC). This move aligns with the growing trend among state governments to adopt greener vehicles for public transport, and Olectra is keenly participating in various bidding processes initiated by state transport undertakings (STUs).

As of March 31, 2024, Olectra’s order book for electric buses stood impressively at 10,969 units, with expectations of more tenders boosting this number. By the end of FY24, approximately 1,695 of Olectra’s e-buses were operational on Indian roads, collectively covering over 10 million kilometers each month—a testament to their growing influence in the market.

The Booming Electric Bus Market

India’s electric bus market is on a rapid growth trajectory, generating an impressive USD 282.7 million in revenue in 2023. According to P&S Market Research, the market 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 the decade. This growth is driven by the urgent need for cleaner, more efficient public transportation options.

State Transport Undertakings are projected to require about 370,000 buses by 2030, indicating a significant demand for new infrastructure. This includes replacing approximately 35,000 outdated diesel buses with cleaner, more sustainable electric options.

As the production and deployment of e-buses within fleets continue to rise, Olectra Greentech is well-positioned to capitalize on this growth, reinforcing its role as a leader in the electric vehicle sector.

Government Support for Electric Buses

In September, the Union Cabinet approved the “PM-eBus Sewa-Payment Security Mechanism (PSM) scheme,” which has a total outlay of ₹3,435.33 crore. This initiative aims to support the procurement and operation of electric buses by Public Transport Authorities (PTAs), further bolstering Olectra’s growth prospects in the electric bus market.

Conclusion:

Olectra Greentech’s impressive performance in Q2 FY25 reflects its strong positioning in the booming electric vehicle market. With robust profit growth driven by its e-vehicle division and significant contracts on the horizon, the company is poised for continued success. Olectra Greentech Q2 FY25 results, As the demand for sustainable transportation solutions accelerates, Olectra is set to play a pivotal role in shaping India’s electric bus landscape.