Olectra Greentech Ltd

- Olectra Greentech plans a total capex of around INR 700 crores. - INR 500 crores of this capex will be funded through term loans; the remaining INR 200 crores from internal accruals. - Current capex focuses on expanding the new plant capacity at Seetharampur to cater to 10,000 buses by year two. - Additional rebalancing equipment costing about INR 100 crores may be needed to increase capacity to 10,000 units. - The company is acquiring 150 acres of land in Hyderabad to build one of the world’s largest EV bus manufacturing facilities. - By the end of the year, capacity is expected to reach 5,000 buses with plans to ramp up to 10,000 over the following year. - Management is internally deliberating on potential future capex and expanding production capacity beyond 10,000 units, possibly involving plants outside the state.

- FY 2025: Targeting production of approximately 2,000+ electric buses. - Gradual capacity ramp-up planned, starting with about 200 units in Q1, doubling in Q2, and significant increases in Q3 and Q4. - New plant trial production started in February 2024; partial production underway with plans to reach 5,000 units capacity by end of FY 2025 and 10,000 units by following year. - Post Q1, production expected to improve substantially, with the aim to surpass earlier numbers historically from FY 2025-26 onwards. - Order book remains strong with about 11,000 buses, including large orders from MSRTC and BEST Mumbai. - Focus on overcoming past supply chain issues and smoothly transitioning operations to the new plant. - No new product lines like hydrogen buses or three-wheelers are planned for FY 2025; emphasis on fulfilling current EV bus orders. - Olectra aims to beat revenue and profit targets in FY 2024-25 with stakeholders' support.

- Olectra Greentech plans to raise debt through a term loan of approximately INR 500 crores for capital expenditure related to capacity expansion. - The company has received sanctions from commercial banks and is in the process of documentation with a planned drawdown in 2-3 weeks. - There are currently no plans to raise equity capital as of now. - Total planned capex is about INR 700 crores, with INR 500 crores coming from term debt and the balance INR 200 crores from internal accruals. - The focus is currently on building the capacity at the new plant; any future plant expansions or additional capex plans will be deliberated internally and announced appropriately.

- The management expects to beat their numbers with excellent top line and bottom line for FY 2024-25. - Target production is about 2,000 electric buses in FY25, with 5,000 buses expected next year and 10,000 buses the following year, indicating significant revenue growth potential. - EBITDA for FY23-24 was INR 185.5 crores (20% growth YoY), and PAT increased by 18% to INR 78.7 crores, showing improving profitability. - Operating margins remain positive despite Q4 supply chain constraints, and the company expects healthy operating margins going forward due to cost-plus pricing models and expected battery price declines. - Ramp-up of new plant production expected to enhance capacity and efficiency, supporting earnings growth. - Olectra anticipates continued strong demand with a net order book of approximately 10,969 buses, which will drive future revenue and earnings. - Dividend recommended at 10%, reflecting confidence in sustained profitability.

- The current net order book of Olectra Greentech Limited stands at approximately 10,969 electric buses after delivering around 500 buses in FY24. - The total order book mentioned is about 11,000 buses. - They have secured the world's largest e-bus order of 5,150 buses from MSRTC and 3,000 electric buses order from BEST Mumbai. - There is also a 2400 BEST order with a 25% variation clause, allowing a potential to produce an additional 600 buses after completing the base 2400. - The company aims to deliver about 2,000 to 2,500 buses in FY25 and plans to ramp up production capacity to 5,000 buses by end of FY25, with a target of 10,000 buses in the following year. - For e-Tippers, there are 41 orders on hand, with 51 units delivered till date.