Note: This was first published on my substack (pankajg.substack.com) Reproducing here:
Key takeaways from Q4 / FY2024 results:
(1) Commissioned 704 MW in FY24 i.e. only 231 MW commissioned in Q42024 against management guidance of 400-450 MW.
Updated order-book bridge
(2) The yearly execution is a record high at 704MW implying 3X FY 2024 required to be executed in 1.5 Years.
(3) Margins at the same level.
(4) Receivables grew 2X Revenue.
In the EPC business, the developer retains part of the project cost typically 5-10% as a performance guarantee/retention which is released to the EPC company after 6-12 months of commissioning of the project. So this amount is reflected in receivables.
(5) There is a lot of chatter on Social Media about 5B Maverick which is a Solar deployment system - Have not done any project yet.
(6) Deployment of Green Hydrogen Project: The company has completed the Green Hydrogen Project.
(7) Increasing share of PSU orders
"Last year, the share of PSUs in our order book was just 10%. Now, in terms of volume, it has gone up to 15% and in terms of value, it has gone up to almost 35%. We see the share of PSUs increasing as the government is coming up with a lot of investments in this sector”
(8) Increased bidding pipeline
In FY24, the company’s bidding pipeline stood at 10GW. This has increased to 13 GW this year. So, the growth rate momentum is increasing by more than 30%.
(9) Looking forward to benefiting from Rooftop Solar opportunity. Preparing an organizational structure for the same
(10) Looking to participate in the BESS sector. Govt. has 47 GW plan. 5% BESS is mandatory with Govt. policy as of now, which may be hiked gradually
We are waiting for govt initiatives/ actions on this front