JBM is well poised to ride electric bus wave: VC & MD Arya

In an exclusive interview with Money9, Original Equipment Manufacturer, JBM Auto, VC & MD, Nishant Arya, said that the company’s order book currently constitutes of 5,000 electric buses (e-buses) for the financial year 2024-25. Shah said, “We have already delivered 4,000 plus  e-buses in financial year FY24.” According to Arya, seeing robust demand for e-buses in the country, the firm has increased capacity and utilisation of plant and machinery multi-fold. Shah said, “We can now produce high volume premium buses. At the same time, we clearly see demand for e-buses has increased muti-fold. Definitely, JBM is very well poised to ride this wave and proceed further.”

The government of India’s increased focus on strengthening public transport infrastructure of the country requires more and more number of e-buses plying on the roads. Currently, this segment constitutes only 0.2 per cent market share of total electric vehicle (EV) industry. There is huge potential for growth. And JBM Auto stands to gain from this.

The firm operates in three segments namely OEM, components and cooling. The firm manufactures electric vehicles and e-buses under the OEM segment. Amongst all three segments, the OEM segment of the company reported highest revenue and profit growth rate in Q4 FY24 on yearly basis. After that, component segment contributed the most in overall revenue growth of the firm in the said quarter. Albeit, according to Arya, the cooling segment is the most profitable segment of the business.

According to him, all three business are very well positioned for JBM Auto to grow and really progress in the market going forward.

The company saw strong uptick in overall March quarter revenue and profit. JBM Auto’s Q4 FY24 overall revenue jumped 47 per cent YoY to Rs 1,486 crore from Rs 1,010 crore in Q4 FY23. March quarter profits jumped 125 per cent YoY to Rs 63 crore from Rs 28 crore in year ago period. EBITDA stood at Rs 177.18 crore in March 2024 quarter up 60.96% YoY from Rs 110.08 crore in March 2023 quarter.

On high growth, Arya said it has come from EV business and component division.

Steel price hike will not impact margins: Arya

On impact of rise in raw material prices on profits, Arya said, “Because the company has signed long term contract on steel purchase. So, we don’t see any impact on profit margins due to raw material price hikes in FY25.

On revenue and profit guidance for FY25, Arya said the firm has set a topline growth target of Rs 6,500 crore and EBITDA margin of 12 per cent plus.

In last six months, the scrip is up 56 per cent. While, in last one year, it has given returns of 131 per cent.