Auto Ancillary Stock which is India’s leading manufacturer of thermal products for automotive applications in India jumped 13 percent after it bags an order worth Rs. 25 Crores and the Ministry of Road Transport and Highways mandates air conditioning systems for N2 and N3 category vehicles.
At 2:32 a.m the shares of Subros Limited were trading at Rs. 496.15, up 10.17 percent from its previous day’s close price of Rs. 450.35 and its market capitalization is Rs. 3,235 Crores.
Subros Limited has bagged a new order from Indian Railways for the supply and commissioning of Coach Roof Mounted Air – Conditioners for a consideration of Rs. 25 Crores. It is also a supplier of Rail Driven Cabin Air Conditioning systems to Indian railways and its focus on Coach Air-conditioners is in line with its strategic direction to expand the company’s business in the Railway Electric Mobility segment.
It has a market share of 42 percent in passenger car AC and a 51 percent market share in Truck Aircon/Blower. Some of its key customers include Maruti Suzuki, Denso, Force Motors, Tata, Mahindra, SML Isuzu, Ashok Leyland, and many more.
Ministry of Road Transport and Highways, Government of India vide notification dated 8th December 2023 has amended the central motor vehicles rules, 1989, mandating that the vehicles manufactured on or after 1st October 2025 shall be fitted with an air-conditioning
system for cabins of N2 category ( 3.5 tonnes and above but less than 7.5 tonnes Gross vehicle weight) and N3 category ( 7.5 tonnes and above gross vehicle weight).
The new rule may have incremental business opportunities for the vehicle air conditioning components manufacturing industries.
The company’s revenue from operations grew 25.36 percent from Rs. 2,238.64 Crores in FY22 to Rs. 2,806.28 Crores in FY23, accompanied by increasing profits of Rs. 32.49 Crores to Rs. 47.92 Crores.
Subros Limited was formed as a joint venture between the Suri family of India, Denso Corporation, and Suzuki Motor Corporation, Japan. It is the leading manufacturer of thermal products for automotive applications in India, it is the only integrated manufacturer of auto air conditioning systems and thermal products.
Written by: Bharath K.S
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