Shares of Waaree Renewable Technologies surged 7% on January 20, reaching ₹1,118 apiece, following the receipt of a Letter of Intent (LOI) from a leading wind energy company. This development comes as a positive sign for the company, whose stock had dropped over 36% in the last three months, significantly underperforming the Nifty 50 index, which saw a 6% decline during the same period. The stock recently hit a 52-week low of ₹530 on January 19, 2024.
The LOI is for the EPC of a 105 MWp (DC) ground-mounted solar power project. To be executed on a turnkey basis, the project is likely to be completed in FY2025-26 and indicates potential revenue growth over the next few years.
Waaree Renewable Technologies is in the business of renewable energy solutions with a product offering comprising solar panels, inverters, and energy storage systems catering to both residential and commercial customers. Despite its strong focus on the green energy sector, the company reported inclement performance in Q3FY25. Consolidated PAT fell 16% YoY to ₹53 crore despite a growth in consolidated revenue from operations by 11% YoY at ₹360 crore.
In comparison, the EPC segment was outstanding with its numbers-the customer revenue leaped to ₹1,093.99 crore on volume at 1,024.92 MWp versus ₹580.80 crore at 473.44 MWp for last year. EBITDA decreased by 18% YoY from ₹87 crore in Q3FY24 to ₹71 crore in Q3FY25 on the operating side.
Additionally, Waaree Renewable declared an interim dividend of Re 1 per equity share (face value of ₹2 each). The record date for ascertaining the eligibility of the shareholders is fixed as January 24, 2024.
The recent win in LOI, apart from encouraging performance in the EPC segment, might provide just the fillip the company needs in its growth trajectory.
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Source: Moneycontrol
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