JBM Auto shares saw a modest increase of 1% on Thursday, trading at ₹1,863.05 per share. This rise follows the company’s announcement that its arm, JBM Electric Vehicles, has established a wholly-owned subsidiary in Singapore, named JBM Electric Vehicles International.
The move is part of JBM Auto’s broader strategy to expand its electric vehicle (EV) business internationally. The company, which has been actively advancing its presence in the EV sector, took this step as a strategic initiative to tap into global opportunities. This development is expected to attract more attention from share market investment enthusiasts.
Focus on international growth
The new subsidiary, JBM Electric Vehicles International, has an authorised share capital of 20,000 Singapore dollars and is currently in the pre-operational phase. JBM Auto has highlighted its commitment to expanding its EV operations globally. The company's leadership anticipates significant growth opportunities in the EV market. Singapore has been selected as the first international hub due to its favourable business environment for clean energy initiatives.
Local expansion with Ecolife Mobility Odisha
In addition to its international move, JBM Auto also announced that its joint venture/subsidiary, JBM Ecolife Mobility, has incorporated another wholly-owned subsidiary named Ecolife Mobility Odisha (EMOPL). The Ministry of Corporate Affairs has granted EMOPL its Certificate of Incorporation. This new entity will be responsible for operating, running, and maintaining electric buses in partnership with government bodies and state transport undertakings (STUs).
This development supports JBM Auto's goal of increasing its foothold in India’s electric mobility space, particularly through government collaboration. By providing state-of-the-art electric buses, the company aims to contribute to India’s mission of reducing carbon emissions in public transportation.
Strategic funding for EV bus deployment
JBM Ecolife Mobility has also been in the spotlight recently, securing $100 million in strategic funding from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB). The company plans to use this funding to deliver and operate electric buses across various states in India. Notably, the company has confirmed that 650 electric buses are scheduled for deployment in multiple states in the near future.
The company’s efforts to promote electric mobility are well supported by its robust order book and extensive experience. With a fleet of 1,500 electric buses already operational across 10 states and more than 15 major airports in India, JBM Auto is emerging as a significant player in the Indian EV space. Furthermore, over 6,500 buses are either deployed or under execution as part of its order pipeline.
Financial performance and future outlook
JBM Auto has shown strong financial growth in recent quarters. For the quarter ending 30th June 2024, the company reported a 10% year-on-year (YoY) rise in net profit, amounting to ₹33.18 crore. Additionally, its total revenue for the same period increased by 20.95% YoY, reaching ₹1,144.50 crore.
The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 25.04% year over year to ₹149.15 crore for Q1FY25. As of now, JBM Auto's order book value is ₹45,000 crore, positioning the company for continued growth in both the domestic and international markets.
Since the beginning of 2024, shares of JBM Auto have risen nearly 15%, with the stock gaining over 35% in the past year. These strong performance indicators reflect the company’s growing influence in the EV market, making it a popular choice for share market investment.
JBM Auto’s strategic moves, both locally and internationally, position the company for sustained growth as it continues to expand its electric mobility footprint worldwide.
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