Olectra Greentech Ltd., a small-cap business with operations in the consumer discretionary sector, with a market worth of $3,300.06 Cr Olectra Greentech Ltd. is a pioneer in the manufacture of insulators and electric buses in India.
Olectra Greentech, India's leading producer of all-electric buses, has production facilities in Hyderabad. Olectra is happy to announce its technological partnership with Reliance on the creation of Hydrogen Bus, which will open the Indian market to a next-generation transportation system.
The Hydrogen bus is a 100% carbon-free alternative to conventional public transportation, according to a stock exchange filing from Megha Engineering and Infrastructures Ltd. subsidiary Olectra Greentech Limited (OGL). Olectra has taken the initiative to hasten the development of
hydrogen-powered buses in response to the depletion of natural resources and the detrimental effects of air pollution and emissions. The Indian government will benefit from this project in its pursuit of carbon-free hydrogen. Via its Hydrogen buses, Olectra intends to support the country's environmentally sound energy security. Depending on the arrangement, the 12-meter low-floor bus may accommodate 32 to 49 passengers in addition to the driver. 400 kilometres or more can be covered by the bus on a single hydrogen fill. With hydrogen, it only takes about 15 minutes to travel this distance. The main selling point for gradually replacing outdated petrol and diesel systems with new ecologically friendly buses is that these buses only release water through their tailpipes.
The system consists of Type-4 hydrogen cylinders installed on the top of the bus. Temperatures between -20 and +85 degrees Celsius are also withstanding for the cylinders. Olectra stated when making the announcement that it planned to commercially operate these buses within a year. For the third quarter of FY23, the company reported unaudited net sales of INR 248.6 crores, a 20% increase over the third quarter of FY22's INR 207.1 crores. Delivery of 142 electric buses, as opposed to 103 in Q3 FY22, allowed for this surge.
Earnings per share (EPS) for Olectra Greentech increased from 2.22 for the period ending December 31, 2021 to 5.23 for the period ending December 2022. In the third quarter of FY23, the company's net order for electric buses totaled 3,220. After the announcement of its partnership with Reliance, Olectra Greentech's shares closed today on the NSE at 407.25 per share, up 5.90% from the previous closing of 384.55. The stock has down 21.33% YTD.
