Quick correction @Jitendrapd94 the 1.3GW plant operationalised in July 2024 was in Noida and not in Goa(this is the Indosolar facility they acquired)
The problem i foresee for Waaree and other pure solar module companies are they they will eventually become commodity plays (despite the management claiming otherwise in the concall).
If you see the sales, volume-wise it looks great (30%+growth- 4.8 GW full year FY24 vs 3.3 for half year FY25). Despite this sales are more or less flat to marginally higher. This shows the drastic reduction in realisation per Watt of module sold which is reflected in the price chart shared in the investor presentation.
Looks like company will keep having to grow volume aggressively(not to mention keep investing in higher opex/capex to continuously upgrade to newer technologies leading to higher depreciation charges) just to give marginally higher sales.
The carrot they dangle is the expanded margins post commercialization of cell lines. But as claimed by management that will only lead to around 2% improvement in margins.
I fail to see how they can sustain profit growth with this model as can be seen from all leading solar companies world over (exception being FirstSolar which is an exceptionally innovative company with proprietary low carbon technology for complete integrated play).
Maybe that’s why company is foraying into IPP/Green hydrogen/BESS to diversify and get different revenue streams.
Would like to hear thoughts of @Mohit_baid and other members/investors.
Thanks
Disc:invested
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