Ashok Leyland bags ₹981-crore single largest order for fully-built buses from MSRTC, shares gain 2%

The Hinduja group company informed the stock exchanges in a filing that the company has bagged an order for the supply of 2,104 fully built buses worth ₹981 crore from Maharashtra State Road Transport Corporation (MSRTC).

The contract is the single largest order from MSRTC, the company informed the bourses.

The Viking passenger buses will be manufactured at Ashok Leyland’s exclusive bus body plants and will offer enhanced safety, improved comfort, and a lower total cost of ownership for MSRTC, Ashok Leyland said.

The time period for the supply of these BSVI OBD II diesel fuel-type fully built passenger buses will be from August 2024 to August 2025.

MSRTC is one of the largest state transport undertakings in the country with over 15,000 buses.

The order will further contribute to strengthening Ashok Leyland's dominant position in the bus segment, the company said in the filing.

The Hinduja group company is among the top 5 largest manufacturers of buses in the world and the largest in India.

Ashok Leyland shares gained up to 2% to hit a high of ₹228.69 apiece on the NSE. More than 51 lakh shares of the company changed hands on the bourse.

Shares of the company were trading 1.28% higher at ₹227.14 apiece on the NSE at 12:39 am. The shares closed 1.76% higher at ₹228.20.

Ashok Leyland reported a 6% rise in its domestic sales in the first quarter of 2024-25. Total sales of commercial vehicles rose to 41,559 units in the domestic market in the April-June quarter against 39,107 units in the April-June period of 2023.

Medium and heavy commercial vehicle sales rose by 8% to 26,214 units in the first quarter of FY25 compared to 24,286 units in the first quarter of FY24.

Light commercial vehicle sales grew by 4% year on year to 15,345 units in April-June this year compared to 14,821 units in the year-ago period.