Subros Soars as Government Mandates AC Systems in Truck Cabins

7 Jul 2023 , 02:45 PM

Shares of Subros, a leading automotive air-conditioning manufacturer, rose by 9% in morning trade on July 7. The surge came after the Indian government approved draft notifications mandating the installation of air-conditioning systems in truck cabins.

Union Road Transport and Highways Minister Nitin Gadkari announced the approval of the draft notification, which will require AC systems in truck cabins belonging to categories N2 and N3. The government plans to implement this regulation starting from January 2025.

About the company: Subros Limited, established in 1985 as a joint venture with ownership by the Suri family, Denso Corporation, and Suzuki Motor Corporation, is the leading manufacturer of auto air conditioning systems in India.

The company manufactures various components, including compressors, condensers, and heat exchangers, catering to different sectors such as buses, trucks, refrigeration transport, off-roaders, and railways.

With a capacity of 1.5 million AC kits per annum, Subros holds a prominent position in the industry. According to BSE data, the company reported revenue of Rs 748.11 crore and a net profit of Rs 18.64 crore for the quarter ending March 2023.

The promoters currently hold a 36.79% stake in the company, while the public holds the remaining 63.21%.

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