Olectra Greentech stock jumps after Q2 net profit zooms 156%, revenue rises 71% YoY

Olectra Greentech has reported solid financial results for Q2FY25, with net sales, PAT, and PBT reaching their peak levels in the last five quarters.

Shares of Olectra Greentech gained 4 percent on October 23 after the electric vehicles maker reported a 156.4 percent on-year (YoY) jump in net profit at Rs 47.7 crore for the quarter ended September 30, 2024.

The company's revenue from operations surged 70.5 percent YoY to Rs 523.7 crore against Rs 307.2 crore in the year-ago period.

At the operating level, the EV maker's earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at Rs 81.2 crore in the fiscal second quarter over Rs 40.6 crore in the year-ago period.

The EBITDA margin stood at 15.5 percent in the reporting quarter against 13.2 percent in the corresponding period in the previous fiscal.

Follow our market blog to catch all the live action

Founded in 2000, Olectra Greentech made a significant move in 2015 by launching electric buses in India. The company has also become the largest manufacturer of silicone rubber and composite insulators used in power transmission and distribution networks in the country.

The company has demonstrated noteworthy financial management, as evidenced by its Operating Profit-to-interest ratio, which stands at an impressive 7.25 times—the highest level recorded in the past five quarters.

This improvement reflects the company's enhanced ability to handle interest payments effectively.

In terms of cash flow, Olectra Greentech achieved its strongest Operating Cash Flow in three years, amounting to Rs 143 crore. This indicates robust revenue generation from its core business activities.

Overall, the company has reported solid financial results for Q2FY25, with net sales, PAT, and PBT reaching their peak levels in the last five quarters. Consequently, Olectra Greentech's Earnings per Share (EPS) rose to Rs 5.79, signaling increased profitability and delivering greater returns for its shareholders.

At 9:30 am, Olectra Greentech shares were trading 3 percent higher at Rs 1,674.80 on the National Stock Exchange (NSE). So far this year, the stock has risen around 21 percent, outperforming Nifty's returns of 12 percent.

In the 12 months gone by, the counter has risen around 54 percent compared to Nifty's gain of 26 percent during this period.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.