Ashok Leyland Shares In Green After Bagging ₹982 Crore Bus Order From Maharashtra Government

One of the largest manufacturers of commercial vehicle, Ashok Leyland, recently bagged a bumper deal to provide buses to the Maharashtra Government's State Transport Department.

Ashok Leyland Bags Bumper Order

This development, which came to pass in the later half of the day on Monday, July 15, has understandably swayed investors in the equity market.

The company shares that started on a cautious note has continued to trade in green on Tuesday, July 16.

The Hinduja group-owned automaker bagged a mammoth Rs 981.45 crore order from the Maharashtra State Road Transport Corporation (MSRTC). According to this deal, the company is expected to provide the state government's transport wing with a large fleet of 2104 Viking passenger buses.

According to reports, this will be the largest such order that a state government has placed and Ashok Leyland will provide the department with the latest BSVI OBD II compliant buses. These new buses are expected to be supplied in the span of a year, between August 2024 and August 2025.

Ashok Leyland Stocks Rise

Despite being one of the largest bus service providers with about 15,000 buses in its undertaking, the department has been slow in transitioning from older bus models to relatively new and ecologically sustainable buses.

Ashok Leyland is yet to announce its results for Q1 of FY25 or the first quarter of the new fiscal year. In the previous quarter or Q4 of FY24, however, the company increased its net profit after tax by 13.41 per cent to a cumulative sum of Rs 853.41 crore. Its overall income also increased by 2.84 per cent to Rs 13,577.58 crore.

After the initial spurt at the beginning of the day's trade on Tuesday, the company shares have wavered and declined in growth. At 10:33 IST, Ashok Leyland shares rose by 0.37 per cent or Rs 0.85, ascending to the mark of Rs 229.05 per share.