The shares of the electric vehicle manufacturer gained up to 12 percent after the company’s net profit and revenue increased by 33 percent and 45 percent YoY, respectively in Q1FY25.
With a market capitalization of Rs 14,127.74 crore, the shares of Olectra Greentech Ltd were trading at Rs 1,709.25 per share, increasing around 11 percent as compared to the previous closing price of Rs 1,543.30 apiece.
Reason for Rise:-
Today, the shares of the company have seen such a bullish movement after Olectra Greentech Ltd’s revenue increased 9 percent on Quarter on Quarter basis from Rs 289 crore in Q4FY24 to Rs 314 crore Q1FY25, if we look into the on Year on Year basis revenue magnified significantly by 45 percent from Rs 216 crore Q1FY24 to Rs 314 crore Q1FY25.
Olectra Greentech Ltd’s net profit zoomed by 60 percent on a quarter-on-quarter basis from Rs. 15 crores in Q4FY24 to Rs 24 in Q1FY25. Further, on a year-on-year basis also net profit magnified drastically by 33 percent from Rs 18 crores in Q1FY24 to Rs. 24 crores in Q1FY25.
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Manufacturing facility & recent expansion:-
The company has a manufacturing capacity of 1,500 units per year and its facilities are located in Hyderabad. Olectra Greentech Ltd is also setting up a new greenfield plant with capacity of 5,000 units/year and scalable up to 10,000 units/year (150 acres of land acquired in Hyderabad).
Recently, the company acquired 150 Acres of land from Telangana State Industrial Infrastructure Corporation Limited to establish a greenfield electric vehicle manufacturing plant to produce EV buses and others EV products in new plant.
Ratio analysis:-
Examining the company’s crucial ratio, return on equity inclined from 7.81 percent in FY22-23 to 8.41 percent in FY23-24, while during the same time frame return on capital employed also inclined from 13.25 percent to 14.44 percent. In contrast, the net profit margin (NPM) stands at 6.12 percent in fiscal year 23-24.
Company profile:-
Olectra Greentech Limited is an India-based firm that manufactures composite polymer insulators and electric buses. The company has three segments: Insulator, e-bus, and e-truck.
Written by:- Abhishek Singh
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