Subros shares soar 9% after government nod for truck cabin AC systems

Govt has approved the draft notification to mandate the installation of air-conditioning systems in the cabins of trucks. (Representative image)

Shares of Subros, an automotive air-conditioning manufacturer, surged 9 percent in morning trade on July 7 after the government approved draft notifications mandating AC systems in truck cabins. At 9:27 am, the stock was trading at Rs 476.10 on the National Stock Exchange, up 9.05 percent from the previous close.

On Thursday, Union Road Transport and Highways Minister Nitin Gadkari announced that he has approved the draft notification to mandate the installation of air-conditioning systems in the cabins of trucks belonging to categories N2 and N3. The government plans to implement this regulation starting from January 2025.

Subros Limited, 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, 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, catering to various segments, including buses, trucks, refrigeration transport, off-roaders, and railways. The company has a capacity of 1.5 million AC kits per annum.

According to information available on BSE, 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 of the March quarter, the promoters held a 36.79 percent stake in the company, while the remaining 63.21 percent is held by the public.

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