Waaree Energies Vows Profitability Independently of Tariffs
Waaree Energies Pavilion at REIEXPO2024 Image credit X.com @waareegroup
Waaree Energies Asserts Capacity Expansion for Growth
By S Jha
New Delhi, November 19: A day after announcing the second quarter result, the management of Waaree Energies in a conference call with investors dispelled apprehensions of tariff war affecting growth after the ascendancy of Donald Trump in the US. The management stuck to robust growth path.
The management is optimistic about the solar industry’s growth. It argued that the company will further grow amid declining costs and favourable policies.
In the conference call, the management said that “they plan to expand module capacity and diversify into green hydrogen and BESS”. The management noted the concerns, including potential US policy changes.
“The business model is designed to sustain profitability independently of tariffs,” the management told investors, while stressing on “technological innovation and quality in its offering”.
Waaree Energies Limited (WEL) reported a modest increase in revenue for Q2 FY25. With a 2.95 per cent YoY growth, Waaree Energies posted income of ₹36,634.63 million, which was 2.67 per cent increase for H1 FY25.
EBITDA and PAT of Waaree Energies saw significant growth, with Q2 EBITDA up 14.01 per cent and PAT up 17.35 per cent YoY.
Also Read: Netweb Technologies Hits Bull’s Eye with Multiple Breakouts
“The company has shifted its export revenue mix from 60 per cent in FY24 to 27 per cent in FY25, focusing on maintaining strong profitability,” said the management in the conference call. The management also asserted that the “module production in H1 FY25 reached 3.3GW”.
It also stated that the “order book is robust at 20GW, with capacity utilization at 50-60 per cent due to customer-specific requirements”. “The 5.4GW cell manufacturing facility is in trial runs while full production is expected in early FY26. The 6GW facility in Odisha is progressing, targeting FY27 commercialization,” added the management in the conference call.
It also stated that “₹600 crore investment is planned for renewable projects”. Shares of Waaree Energies Limited ended the Tuesday session with seven per cent losses. The scrip ended the day at ₹2883 a share.
Also Read: NTPC Green Energy IPO Buzzes with Strong Demand
The big takeaway from the conference call is the shift in export revenue mix from approximately 60 per cent in FY24 to around 27 per cent in FY25. The management has stressed its commitment to maintaining strong EBITDA and profitability in the future.
“Module production volume in H1 FY25 reached 3.3GW, exceeding the total production of 4.8GW in FY24. The current order book is approximately 20GW, featuring a broad mix of customers,” added the management.
It also stated that the “5.4GW cell manufacturing facility in Chikli is in trial runs, with commercial production slated for December 2024’s second half”. The management projected an optimistic outlook for the solar industry, fuelled by the declining cost of solar energy and favourable government policies in India and the US.
They viewed solar as a promising multi-decadal growth story with ample prospects in both domestic and international markets. By the end of FY25, they anticipate having 13.3GW of module manufacturing capacity in India and 1.6GW in the US, with further expansion in the US under review depending on policy developments.
Join the WhatsApp Channel of The Raisina Hills
About The Author
