Olectra Greentech gained 3.62% to Rs 539.95 after the comany said that Evey Trans (EVEY) has received two letter of awards (LoAs) from Telangana State Road Transport Corporation (TSRTC) for 550 electric buses.
Accroding to the LoA, the company will supply 550 electric buses consisting of 500 buses for intra-city and 50 buses for inter-city operations.These orders for supply of 500 electric buses and 50 electric buses are to be on gross cost contract (GCC) / OPEX model basis for a period of 12 years and 10 years (contract period), respectively.
EVEY shall procure these buses from Olectra Greentech and which shall be delivered over a period of 16 months. Maintenance of these buses shall also be undertaken by the Olectra during the contract period.
The value of these 550 bus supply would be approximately Rs 1,000 crore for Olectra.
Olectra Greentech holds 34% stake in Evey Trans.
"These transactions between Olectra and EVEY are to be considered as related party transactions and shall be at arm's length basis, the company said in a statement.
Olectra Greentech has major interests in electric buses, composite insulators, amorphous core-distribution transformers, data analysis and IT consulting.
On a consolidated basis, the company's net profit rose 13.6% to Rs 14.38 crore on 23.1% jump in net sales to Rs 256.43 crore in Q3 FY23 over Q3 FY22.
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