Ashok Leyland saw a 1.20% increase to Rs 227.10 following its announcement of securing the largest single fully-built bus order from Maharashtra State Road Transport Corporation (MSRTC) for 2,104 units of Viking passenger buses.
MSRTC, one of India’s largest state transport undertakings with a fleet exceeding 15,000 buses, will integrate Ashok Leyland buses into its operations. These BSVI OBD-II diesel-fueled fully-built buses will be manufactured at Ashok Leyland’s exclusive bus body plants, promising enhanced safety and reduced total cost of ownership for MSRTC. The contract’s total value stands at Rs 981.45 crore.
Shenu Agarwal, Managing Director & CEO of Ashok Leyland, expressed enthusiasm about continuing their longstanding partnership with MSRTC. He emphasized their commitment to delivering highly efficient and technologically advanced products that drive public transportation growth in India. Ashok Leyland’s agility in meeting customer demands underscores their competitive edge.
Diversified Product Portfolio
Ashok Leyland is involved in manufacturing and selling a diverse range of commercial vehicles, along with engines for industrial and marine applications, as well as forgings and castings. In Q4 FY24, the company reported a 19.82% increase in standalone net profit to Rs 900.41 crore, despite a 3.08% decline in revenue from operations to Rs 11,266.69 crore compared to the corresponding quarter last year (Q4 FY23’s Rs 11,625.67 crore).
The buses will adhere to the latest CMVR standards, featuring an AIS 153 compliant body and BS-VI compliance, equipped with rear air suspension and other advanced features.
Strategic Bus Order from MSRTC
Manufactured at Ashok Leyland’s specialized bus body plants using state-of-the-art technology, these buses promise a reduced total cost of ownership for MSRTC. The order is scheduled for execution over a 12-month period spanning from August 2024 to August 2025.
“This new order underscores our commitment to producing highly efficient and technologically advanced products, contributing to the growth of public transportation in the country,” stated Shenu Agarwal, MD & CEO of Ashok Leyland.
Ashok Leyland ranks among the world’s top five largest bus manufacturers and holds the leading position in India. This recent order further solidifies its standing in both the Indian and global bus markets.
Following the order announcement, Ashok Leyland’s shares initially surged but have since moderated from the day’s peak. Currently, the stock is trading 1.2% higher at ₹226.9. Year-to-date, the shares have gained 22%, with a 31% increase over the past 12 months.
These modern, fully-built buses will adhere fully to the latest CMVR standards, feature an AIS 153 compliant body, and incorporate the advanced iGEN6 BS VI OBD II technology with a 197 HP H-Series Engine, along with Rear Air Suspension and other significant enhancements. Manufactured at Ashok Leyland’s exclusive bus body plants using state-of-the-art technology, these buses promise enhanced safety, improved comfort, and a reduced total cost of ownership for MSRTC.
Commenting on the development, Shenu Agarwal, Managing Director & CEO of Ashok Leyland, expressed, “We are thrilled to continue our longstanding partnership with the Maharashtra State Road Transport Corporation (MSRTC). This new order underscores our commitment to delivering highly efficient and technologically advanced products, fostering the growth of public transportation in the country. Our deep understanding of customer needs and our responsiveness set us apart.”
Ashok Leyland stands among the world’s top five largest bus manufacturers and is the largest in India. This recent order further strengthens Ashok Leyland’s position in both the Indian and global bus markets.
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