Ashok Leyland's stock price surged more than a per cent on Wednesday after the automobile manufacturer announced that it has set up a new integrated commercial vehicle plant focused on green mobility in Uttar Pradesh.
The manufacturing site will encompass an area of 70 acres, primarily focused on the production of electric buses. The facility will also have the capability to produce other vehicles powered by existing and other emerging alternate fuels.
At 10:10 am, the shares of Hinduja's flagship company were trading at Rs 173 price level, up by almost a point on the National Stock Exchange.
Commenting on the development, Shenu Agarwal, MD & CEO, Ashok Leyland said, "This facility will not only address the rising demand for electric vehicles but also play a vital role in the holistic development of the region. Our focus on electric trucks and buses resonates with the evolving landscape of sustainable transportation and pushes us one step further to build a green mobility future."
The plant will have an initial production capacity of 2500 vehicles per annum. Ashok Leyland aims to enhance this capacity to 5000 vehicles annually within the next decade, owing to catering to an increasing demand for electric and diverse vehicle types in the future.
In Q3FY24, the automobile manufacturer reported a net profit of Rs 580 crore, translating into a surge of 60 per cent compared to the corresponding quarter of the previous financial year. Whereas revenue stood at Rs 9,273 crores, marking an increase from Rs 9,030 crores recorded in Q3FY23.
On an annual basis, the shares of the automobile company have given modest returns of 17.5 per cent on the National Stock Exchange.
