Management Discussion and Analysis

Key Takeaways from Management Discussions

Robust Financial Growth

• Revenue: Consolidated revenue increased by 45% year-over-year to ₹313.9 crores in Q1 FY'25.
• Profitability: Profit After Tax rose by 34% to ₹24.3 crores.

Operational Highlights

• Deliveries: Delivered 156 electric buses in Q1 FY'25, totaling 1,851 buses and 51 electric tippers delivered to date.
• Order Book: Strong net order book of 10,818 electric buses.

Production Capacity Expansion

• Current Capacity: 200 buses per month.
• Expansion Plans:
  • Ramp up to 5,000 buses per month by year-end.
  • Target 10,000 buses per month in FY'26.
  • Transitioning to a new plant aiming for 80-85% capacity utilization in H2.

Market Opportunities

• High Growth Potential: In the EV sector, especially in heavy commercial vehicles.
• Infrastructure Support: Adoption aided by existing charging infrastructure at bus depots.
• Private Market Entry: Entry into the private electric bus market with clients like Microsoft.

Strategic Initiatives

• Funding: Secured a term loan of ₹500 crores for expansion.
• Safety Emphasis: Emphasizing safety with Lithium Ferro Phosphate (LFP) batteries certified to IP65 and IP66 standards.
• Environmental Goals: Aligning with global environmental goals like the Paris Agreement.

Highlights from Conference Call

Future Outlook

• Delivery Targets: Expecting to deliver 1,500 to 2,000 buses in FY'25.
• Production Confidence: Confident in doubling Q1 delivery numbers in Q2 despite capacity constraints.
• Tender Participation: Positive about participating in upcoming tenders.

Operational Efficiency

• Issue Resolution: Initial production issues have been resolved.
• Margin Maintenance: Maintaining healthy operating margins, aiming for 10-12% over the long term.

Risk Management

• Compliance: Addressing stringent battery compliance norms.
• Financial Management: Managing finance costs associated with expansion and bank charges.

Competitive Landscape

• Market Awareness: Acknowledges competition but focuses on quality and timely deliveries to maintain an edge.

Shareholder Engagement

• Investor Relations: Open to enhancing interaction, including potential factory visits.