Pavna Industries, a leading player in the automotive components sector, has recently announced an agreement with Ola Electric, further cementing its presence in the burgeoning electric vehicle (EV) market. The agreement entails Pavna Industries supplying ignition switches and latches to Ola Electric, a move aimed at fortifying the latter’s manufacturing capabilities for two-wheeler electric vehicles.
In a statement released by Pavna Industries, the company expressed its commitment to providing high-quality components to Ola Electric’s manufacturing facilities spread across India. This collaboration enhances the quality standards of Pavna Industries in the EV segment, and bolsters the affordability aspect for consumers.
Swapnil Jain, the Managing Director of Pavna Industries, highlighted the significance of this partnership, stating, “Pavna and Ola Electric joining forces will not only drive affordability but also enhance the quality standards for enthusiasts of two-wheeler EVs.” Mr Jain further emphasized the role of Ola Electric’s diverse product range in accelerating the adoption of electric vehicles in India, underscoring the pivotal role played by such collaborations in driving the nation towards sustainable mobility solutions.
Buoyed by India’s push towards net-zero emissions, Pavna Industries plans to expand its product range in the EV segment, with upcoming offerings such as motors and motor controllers poised to cater to the growing market demand. Despite reporting a 10.6% decline in revenue from operations during the third quarter, Pavna Industries managed to increase its earnings before interest, tax, depreciation, and amortization (EBITDA) margin by 115 basis points to 9.93%. Notably, the dissociation of a loss-making subsidiary positively impacted the company’s profitability, leading to a 43% jump in net profit to ₹2.2 crore for the quarter.
Speaking on the company’s performance, Swapnil Jain remarked, “Second and third quarters usually represent peak sales periods for the industry, resulting in increased volumes during the quarter. Lock Systems have majorly contributed to the increased sales volumes and revenues during the quarter.”
Market sentiments towards Pavna Industries have been positive, with its shares witnessing a remarkable surge of over 38% since the beginning of the year. The stock’s impressive performance, recording a gain of nearly 76% in the last year, underscores investor confidence in the company’s strategic initiatives and its growing presence in the EV ecosystem.
