Shares of automotive air-conditioner manufacturer Subros were locked in the 20 percent upper circuit on June 20 after Union Road Transport Minister Nitin Gadkari said AC cabins for trucks will soon be made mandatory.
As drivers play a key role in the transport sector, which is one of the most important areas for India, there is a need to address issues regarding their working conditions and state of mind, Gadkari said at an event on June 19.
Drawing attention that truck drivers have been forced to work in extreme heat conditions, the Union minister said that he has been pushing for air-conditioned cabins for truck drivers for a long time.
Also Read: AC cabins for trucks will soon be made mandatory: Nitin Gadkari
"Some objected to it saying it will increase costs… but before coming here I have signed on the file that henceforth, driver cabins in trucks will be air-conditioned," Gadkari said.
Shares of Subros soared 20 percent to its 52-week high of Rs 434.50 in morning trade on June 20.
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Subros Limited was founded in 1985 as a joint venture with 36.79 percent ownership by the Suri family of India, 20 percent ownership by Denso Corporation of Japan and 11.96 percent ownership by Suzuki Motor Corporation of Japan. It is the leading manufacturer of auto air conditioning systems in the country.
It manufactures compressors, condensers, heat exchangers and all connecting elements required to complete AC loops and caters to all segments, including buses, trucks, refrigeration transport, off- roaders, and railways. It has a capacity of 1.5 million AC kits per annum.
The company posted revenue of Rs 748.11 crore and a net profit of Rs 18.64 crore for the quarter ended March 2023, as per information available on BSE.
As of March quarter, the promoters held a 36.79 percent stake in the company while the rest 63.21 percent is held by the public.
Shares of Subros Ltd are up 41 percent on YTD basis, while the one-year return stands at 50 percent.
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