1,666 buses are ordered by Ashok Leyland from Tamil Nadu State Transport

 1,666 buses are ordered by Ashok Leyland from Tamil Nadu State Transport

After receiving an order for 1,666 buses from the Tamil Nadu state transport undertakings (TN STUs), Ashok Leyland, India's largest bus manufacturer, saw an increase in its stock price during the first hour of trading on October 16.

As a result, the stock was up 0.5 percent from the previous day's closing price when it was trading at 176.55 on the National Stock Exchange at 2 PM. This is good

Even if the Nifty and the Sensex, the two broad market indices, were trading lower, development took place.

With almost 18,000 Ashok Leyland buses making up an astounding 90% of their fleet, Ashok Leyland has long been the favored brand for Tamil Nadu state transport operations. With this most recent purchase from TN STUs, Ashok Leyland has already received 20,000 buses from them.

Modern Technology and Dependability

The buses made by Ashok Leyland are notable for both their high caliber and astonishing quantity. With cutting-edge iGen6 BS-VI technology and a powerful 147 kW (197 hp) H-series engine, the company's buses are specifically built to offer great passenger comfort. This innovation decreases the overall total cost of ownership while improving comfort and safety.

further expansion

The Gujarat State Road Transport Corporation placed contracts for 1,282 buses from Ashok Leyland in September, further highlighting the company's foothold in the Indian commercial vehicle sector. The company's impressive performance persisted, with sales rising noticeably year over year to 19,202 units in September 2023, up 9% from 17,549 units in September 2022. Domestic sales increased by 10% to 18,193 units from 16,499 units the year before.

Ashok Leyland reported a rise in net profit in the first quarter of the current fiscal year (Q1FY24), up 747% to 576.42 crore from 66.05 crore in the equivalent quarter of the previous year. The operating revenue for the first quarter of FY24 was $8,189.29 crore, up 13.3% over the same period last year.

Capital coming into Uttar Pradesh

Ashok Leyland declared a 1,000 crore investment in Uttar Pradesh in September. has a major emphasis on clean and green mobility, aims to construct a bus manufacturing facility. The goal of the corporation is to reach net-zero emissions by 2048, which is consistent with that goal.

In line with Ashok Leyland's larger objective, the ambitious project in Uttar Pradesh places a strong emphasis on green and sustainable transportation options. In anticipation of the expanding demand for electric and alternative fuel buses, the factory will start out by producing 2,500 buses annually, with plans to extend production to accommodate up to 5,000 vehicles annually over the following ten years.

Ashok Leyland's investment was hailed by Uttar Pradesh Chief Minister Yogi Adityanath as a "historic milestone" for the region. He stressed the state's dedication to offering an environment that is safe and encouraging for investment. He emphasized the apparent change in industrial firms' attitudes about investing in Uttar Pradesh in recent years.

Executive Chairman of Ashok Leyland Dheeraj Hinduja highlights the firm's determination to guiding the Commercial Vehicle Industry's future with a strong emphasis on environmental sustainability and commends Uttar Pradesh's commitment to the environment.

Performance of Stocks

The price of Ashok Leyland's stock declined by around 4% over the last month. However, the stock has returned 28% during the last six months. It nonetheless provided a respectable return of 19% during a one-year period. The stock has generated a 57% return for long-term investors over the past five years.