Olectra Greentech’s share price falls 14% to an intra-day low of Rs 1,160.10 on the National Stock Exchange. The sharp fall in the stock prices came after Maharashtra’s Transport Minister and MSRTC Chairman Pratap Sarnaik cancelled the tender awarded to Olectra Greentech.
However, the stock price of Olectra Greentech came off intra-day lows to trade 5.7% lower at Rs 1,269.10.
The company allegedly failed to meet contractual obligations related to the supply of electric buses on a rental basis.
In July 2023, MSRTC placed one of the world’s largest electric bus supply contracts of 5,150 with Olectra Greentch in a wet lease agreement. The order was valued at Rs 10,000 crore.
Olectra Greentech failed to supply electric buses
Sarnaik alleged that the Olectra Greentech failed to provide even a single bus by the extended deadline of May 22. It was despite being asked to deliver at least 1,000 buses by the same time.
Evey Trans, which is a subsidiary of Olectra Greentech, is responsible for operating and maintaining the buses under the lease agreement.
The company has delivered 2,718 electric vehicles to date.
“If the company cannot deliver on time, the contract must be terminated without delay,” Sarnaik said.
Olectra Greentech Q4 earnings
The net profit of the company came in at Rs 20.69 crore in Q4FY25, compared with Rs 14.89 crores in the same quarter of the previous fiscal year, an increase of 39% year-on-year. The revenue stood at Rs 448.92 crore in Q4 FY25, a jump of 55% YoY.
On the operating front, Olectra Greentech’s EBITDA (earnings before interest, tax, depreciation, and amortisation) reached at Rs 58.35 crores in the last quarter of the financial year 2024-25, a growth of 36% YoY compared with the previous fiscal year.
Olectra Greentech’s stock performance
The share price of Olectra Greentech has risen 0.8% in the last five trading sessions. The stock has given a return of more than 6% in the past one month. However, the stock price has declined by over 19% in the previous six months. It has erased investors’ worth by almost 30% in the last one year.