Why Is Olectra Greentech's Stock Rising On The Back Of The Interim Budget Announcement?

Olectra Greentech, a key player in the electric vehicle (EV) sector, saw its shares surge following Finance Minister Nirmala Sitharaman’s announcement in the 2024-25 Interim Budget. The budget focuses on expanding the EV ecosystem, including enhancing manufacturing and charging infrastructure and introducing a scheme to promote green growth.

What Happened? In India, one of the fastest-growing economies globally, the push for 30% EV usage by 2030 marks a significant step towards balancing economic growth with environmental sustainability. Olectra Greentech’s recent performance mirrors this ambition.

In the third quarter of FY 23-24, the company reported a robust 33% revenue increase to ₹342.14 crore, driven by significant vehicle deliveries. Notably, Olectra celebrated delivering 1,615 electric vehicles, significantly boosting its revenue.

See also: Budget 2024 Live Updates: Nirmala Sitharaman Proposes No Changes In Tax Structures

The company’s financial health showed remarkable improvement. Its EBITDA soared to ₹56.10 crore, a 52% year-over-year increase. The Profit Before Tax (PBT) jumped by 65% to ₹33.84 crore, and the Profit After Tax (PAT) climbed by 77% to ₹27.11 crore.

Additionally, Olectra delivered 178 electric vehicles in this quarter, marking a 25% increase from the previous year.

Price Action: Olectra Greentech Ltd. shares were up 3.71% at ₹1,844.90 right after the speech but have since moderated to ₹1,753.90.

Read next: End Of The Line? Railway Stocks Lose Steam As Budget Disappoints Investors

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