JBM Auto Shares Gain After MoU with Macquarie

On June 11, JBM Auto share price rose during the opening trade after its subsidiary, JBM Electric Vehicles, entered into an agreement with MUON India Private Limited, a company under the Macquarie Group, to deploy over 2,000 electric buses. By 09:27 am IST, JBM Auto share price was trading at ₹2,067.65 on the BSE, marking an increase of ₹21.00, or 1.03%.

In an exchange filing, JBM Auto said, “We are pleased to inform you that JBM Electric Vehicles Private Limited, a subsidiary of JBM Auto Limited (“JBM”) has signed an agreement with MUON India Private Limited, a Macquarie Group company.”

Macquarie Group has introduced an EV financing platform in India named ‘Vertelo’, which aims to provide financing, fleet management, and charging infrastructure solutions. Through this agreement, JBM plans to deploy over 2,000 electric buses, including 9-meter, 12-meter, and other variants, in collaboration with MUON over the next few years.

As part of the agreement, JBM received an initial order for 43 buses in April 2024 and began deliveries within just one month of receiving the order. Additionally, the company successfully completed the delivery by June 10, 2024.

“Based on the agreement, JBM had received an initial order for 43 buses in April, 2024 and started to deliver the buses within just 1 month from the date of the order. Moreover, the company has successfully been able to complete the delivery by June 10, 2024,” JBM Auto highlighted.

“This has been a remarkable feat for JBM having executed one of the fastest ever order turnaround times in the industry, showcasing the company's expertise, agility and capability in the electric bus & EV ecosystem domain. Owing to our highest levels of automation, frugal engineering systems, digitised processes with Industry 4.0, MES and virtual manufacturing, JBM has achieved this productivity pace and fastest time to market,” JBM Auto said in a statement.

For the quarter ending in June 2024, the company's net profit surged by 98.6%, reaching ₹55.75 crore compared to ₹28.07 crore in the same period the previous year. On March 19, the company's subsidiary, JBM Ecolife Mobility, secured a ₹7,500-crore order for 1,390 electric buses.

The tender was awarded by Convergence Energy Services Limited (CESL) for the procurement, supply, operation, and maintenance of the buses under the PM-eBus Sewa Scheme. Additionally, the firm will be responsible for developing the associated electric and civil infrastructure on a gross cost contracting (GCC) basis under the scheme. The order has to be executed within the next 12 to 18 months.

JBM Auto Limited, based in India, is a manufacturer of auto systems with a footprint in the e-mobility sector. The company produces and sells sheet metal components, tools, dies, molds, and buses. Additionally, it offers spare parts, accessories, and maintenance contracts for buses.

JBM Auto Limited operates through various segments, including sheet metal components, assemblies, and sub-assemblies (Component Division); tools, dies, and molds (Tool Room Division); and the Original Equipment Manufacturer (OEM) Division. The Component Division focuses on manufacturing automobile parts for both commercial and passenger vehicles.

The Group's auto component division serves notable clients such as Ashok Leyland, Bajaj Auto Ltd, Fiat, Ford, General Motors Corporation, Honda, Hero, JCB, Mahindra, Maruti Suzuki, Renault, Nissan, TATA, Toyota, TVS, Volvo-Eicher, Volkswagen, and many others.