 "Waaree Energies slips 6% on muted September quarter results")
Waaree Energies share price slipped 6 per cent to Rs 2,914.60 on the BSE in Tuesday’s intra-day trade in an otherwise strong equity market after the company reported a muted set of numbers for the second quarter ended September 2024 (Q2FY25).
At 02:28 pm; Waaree Energies was trading 5 per cent lower at Rs 2,961.60, as compared to 1.07 per cent rise in the BSE Sensex. The stock has corrected 22 per cent from its high of Rs 3,740.75 touched on November 6. It had hit a low of Rs 2,294.55 on the listing day i.e. October 28. Currently, Waaree Energies is trading 94 per cent higher over its issue price of Rs 1,503 per share.
For Q2FY25, the company’s consolidated revenue came in flat year-on-year (YoY) at Rs 3,574 crore, against Rs 3,537 crore in Q2FY24. Consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) was up 1.5 per cent at Rs 525 crore, EBITDA margins came at 14.7 per cent against 14.6 per cent in a year ago quarter. On sequential basis, margins contracted by 152 bps from 16.2 per cent in Q1FY25. Profit after tax rose 17 per cent YoY at Rs 376 crore on account of other income. The company reported other income of Rs 89.09 crore against Rs 21.25 crore in a year ago quarter.
Waaree Energies produced 3.3GW of Solar modules in H1FY25 vs 4.8GW in FY24. The order book was 20GW in Q2FY25. The company has also decided to invest Rs 600 crore for development of infrastructure for developing renewable power projects.
Waaree Energies is the largest solar PV module manufacturer in India with aggregate installed capacity of 13.3 GW, as of June 30, 2024. Waaree is in process of setting up a fully integrated 6 GW manufacturing facility for ingots, wafer, solar cells, and PV modules in Odisha. This capacity is expected to commence commercial operations in FY27E.
Waaree Energies is well positioned to capture industry tailwinds and growth prospects for solar energy in India and globally. Global share of renewable electricity is expected to increase to 46 per cent by CY30E from 30 per cent in CY23. In all renewable electricity sources, solar is expected to contribute substantially to the growth over CY24-30, analysts at ICICI Securities had said in the IPO note.
With solar energy emerging as a key global theme in the transition towards renewable energy, the company is poised to capitalize on the growing opportunity led by its strong track record, leading market share, strong financials, and continued focus on innovation and sustainability, analyst at InCred Equities said.
Government initiatives, such as PM-KUSUM, Rooftop Phase-II, and Atmanirbhar Bharat, highlight India’s commitment to promoting green energy. Supportive policies, including subsidies, PLI scheme, and customs duty exemption on solar components are actively attracting investment and propelling growth in the renewable energy sector, the brokerage firm stated in the IPO note.