SWELECT ENERGY SYSTEMS LTD – some information from Annual report

Swelect uploads the AGM recordings on the website. FY23 AGM Video link is below –

28th AGM Video Recording – 26.07.2023

They also do a good presentation in AGM about the business. AGM recordings of previous years are also present.

Some of the interesting points –

• The nameplate solar module capacity at new manufacturing location is 700 MW with 500 MW of production possible. The company expects capacity utilisation of 50% or roughly 250-300MW of sales. My understanding is per MW sales can result in revenue of 2.5-3cr. In AGM22, management had said that EBITDA margins of 5-10% are possible in modules. Chinese module prices have been falling – we need to track what kind of margins can module manufacturers make.
• There is 40% duty on solar modules and 25% duty on solar cells imported into India.
• The company is also looking to go one step backward and manufacture solar cells. More details on these plans and capex plan will be shared after current module manufacturing line is stabilized.
• The company also has 200 MW balance of systems (BoS) capacity.
• Currently new module plant is operating in 2 shifts. From August, they expect to operate 3 shifts. From Oct, they are looking to manufacture bifacial modules. Anyways, the presentation made at AGM gives detailed quarter wise plan.
• In AGM22, they have said that Amex Alloys is a sub scale casting/forging/foundry business and hence company makes losses or very less margins. At some revenue, operating leverage will play out and margins should inch towards industry average.

Following is a video recording available on YouTube made by ValueQuest – that explains Solar Industry, Developments in India and Positioning of Waaree Energies. I thought it was a good video.

VQ S.C.A.L.E. – Waaree Energies