Olectra Greentech

Olectra Greentech Limited (OGL) is India's leading manufacturer of pure electric buses, with production facilities located in Hyderabad. It is a subsidiary of the MEIL Group. Olectra has produced and deployed all types of electric buses across the country. The company was incorporated in 1992.

The market capitalisation of Olectra Greentech Limited stood at over ₹13,700 crore as of January 16, 2024. Olectra share price has gained more than 1,120% in the last three years.

Business operations

Olectra Greentech Limited is primarily engaged in manufacturing composite polymer insulators and electric buses. Building on its success in the commercial electric bus sector, the company later broadened its product range to include 3-wheeler electric autos and electric trucks within the e-mobility segment.

Olectra Greentech runs its business across various locations. It operates three plants and has one office in India. The company serves the electric vehicle market in nine states within India, while its insulator products are distributed in pan-India. Internationally, it has a presence in one country for e-vehicles and seven countries for insulators.

The manufacturing, operations and annual maintenance of electric buses constitute 87% of Olectra Greentech’s turnover. Secondly, the production of polymer insulators for power distribution contributes around 11% of the turnover.

Olectra caters to diverse customers within both the e-vehicles and composite insulator segments. In the e-vehicles sector, the customer base includes state and central government bodies situated in cities such as Pune, Hyderabad, Mumbai, Ahmedabad, Silvassa, Nagpur, Surat, Tirupati, Cochin, Kullu, Panjim and Dehradun.

In the composite insulator segment, the company’s customers consist of various state and central power generation and distribution corporations, private power generation companies and multinational infrastructure companies. These customers are based not only in India but also in international locations including the United States, Nigeria, Mozambique, Kenya and Zambia.

Olectra Greentech achieved its highest-ever sales with 563 electric buses and 17 electric tippers sold in FY23. A total of 259 electric buses were sold in the previous financial year. It also secured orders for 3,239 electric buses. The company expanded its business segment by introducing the e-tipper division and delivered 17 e-tippers in the last quarter of FY23. In the entire fiscal, 20 electric tippers were ordered.

The company issued a public tender in FY23 to identify a suitable vendor for constructing a greenfield electric vehicle manufacturing facility on 150 acres of land in Seetharampur, Telangana. The land was acquired from the Telangana State Industrial Infrastructure Corporation Limited (TSIIC). The objective is to increase the production capacity to 5,000 buses/trucks with the potential for scalability up to 10,000 units.

Financial highlights

– Olectra Greentech Limited's revenue from operations for FY23 stood at ₹1,090.76 crore, up by 36.4% compared to ₹593.25 crore in FY22. – The net profit after tax for FY23 was ₹66.89 crore compared to ₹35.35 crore during the previous year. – In FY23, the company’s operating profit stood at ₹151.33 crore compared to ₹92.34 crore in FY22. – The company's earnings per share (EPS) stood at ₹7.99 in FY23 compared to ₹4.31 in the previous financial year.