Pavna Industries jumps 5% after company announces deal with OLA Electric to provide ignition switches and latches
Upstox
2 min read • Updated: April 22, 2024, 4:05 PM
Summary
Pavna Industries has indicated it will be expanding its product range to include more offerings in the electric vehicle (EV) segment and launch products such as motors and motor controllers recognising the immense potential and market demand in the sector. Shares of Pavna Industries rose over 38% since the beginning of the year.
Shares of automotive components manufacturer Pavna Industries rose 5% on Monday after the company announced that it has inked an agreement with OLA Electric. Under this agreement, Pavna Industries will provide high-quality ignition switches and latches to OLA Electric across its manufacturing plants in India.
Pavna Industries is headquartered in Aligarh, Uttar Pradesh and offers essential components and intricate engine parts, as well as solutions tailored for the agricultural sector such as latches and handles. Its product portfolio includes ignition switches, fuel tank caps, latches, auto locks, switches, oil pump, throttle body, fuel cocks, casting components and more. The company has presence in the domestic as well as export markets, exporting to countries like Italy, Sri Lanka, Indonesia, Sudan, USA and Bangladesh.
Pavna Industries has also indicated that it will be expanding its product range to include more offerings in the electric vehicle (EV) segment and launch products such as motors and motor controllers recognising the immense potential and market demand in the sector.
During the third quarter, the company reported a 10.6% drop in revenue from operations at ₹79.86 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 1% on a year-over-year basis to ₹7.93 crore. EBITDA margin improved 115 basis points to 9.93%. The company had pointed out that dissociation of the loss-making subsidiary had positively impacted its EBITDA margins, signalling improved profitability. Net profit for the quarter jumped 43% to ₹2.2 crore.
Swapnil Jain, Managing Director, Pavna Industries had said during the results announcement that second and third quarters usually represent peak sales periods for the industry, resulting in increased volumes during the quarter. “Notably, Lock Systems have majorly contributed to the increased sales volumes and revenues during the quarter,” he said.
Shares of Pavna Industries rose over 38% since the beginning of the year. The stock has gained nearly 76% in the last one year.