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JBM Auto eyes revenue of ₹3,000 crore from EV business in FY25
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
The company currently has no plans to either list the EV business or bring in a strategic investor.
JBM Auto is targeting revenue of ₹3,000 crore from its electric vehicles (EV) business for the current financial year (FY25) from ₹1,750 crore in FY24.
In a conversation with CNBC-TV18, the company’s Vice Chairman and Managing Director Nishant Arya said the company is looking to deliver about 2,500 electric buses this year.
Arya said there are currently no plans to list the EV business or bring in a strategic investor in the business.
These are the edited excerpts:
Q. You have met your ₹5,000 crore revenue guidance for the past year for FY25. What kind of revenue guidance can you give us? Also tell us the number of buses you delivered in FY24, and the target for FY25.
A. We are looking at growing to about 6500 crores plus in FY25. And definitely buses and electric vehicle segment would be contributing a lion’s share, along with the other verticals growing as well. Definitely, in this financial year, things have picked up.
Q. Could you tell us the number of EV buses you delivered in last year and this year target?
A. We are looking at about 2,500 buses plus in this financial year. And in the last financial year, we’ve delivered more than 1,000 buses.
Q. What about the EV division revenues. You have done about ₹1,750 crores in FY24. What is the target by the end of FY25?
A. We would be targeting to enhance that by at least 60%. So close to ₹3,000 crores.
Q. Last time, you told us that you will retain your EBITDA margin guidance of 11 to 12% in FY24, and over 12% in FY25. You ended the year with around 11.6% margins. What is the scope of growth in FY25 and 26 for margins?
A. FY25, we would be looking to go beyond 12%.
Q. Two part question: Since the EV business is scaling up to such a good extent, are there any plans to demerge business?Second, for the last 12 months there has been this rumour on the market that you will probably be interested in SML Isuzu. Any progress on that?
A. There are no plans of demerger as of now. The company would be focusing to grow all the businesses. I would not like to comment on market speculation. If there is anything which is firmed up, we’ll definitely be sharing with you.
Q. Do you want to deny it that you are not in talks at all?
A. Yeah.
Q. You said 2,500 EV buses will be delivered in FY25. These are orders you have already got. Any kind of further order visibility from any state transport undertakings that you could close in the next 12 to 18 months, incremental to this number?
A. Once the new government is formed things will become clearer. During this period, neither the state nor the central government bodies end up sharing any details beyond the point. Current order book is 5,000 buses after delivering the buses in FY24. These 2,500 buses will be delivering out of those buses in this financial year. We would be looking to participate and evaluate more tender opportunities as they come by because buses are a big focus area for all cities and states across the country.
Q. Any plans to list the EV business anytime soon or any plan to get a strategic investor?
A. Not yet.
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