The shares of the prominent renewable energy company jumped 3 percent after the company’s subsidiary received Letters of Intent for the development of solar power projects.
With a market capitalization of Rs 10,878.21 crore, the shares of KPI Green Energy Ltd were trading at Rs 552.75 per share, decreasing around 3.43 percent as compared to the previous closing of Rs 572.40 apiece.
Reason for rise
According to the company filing, Sun Drops Energia Private Limited, a subsidiary of KPI Green Energy Limited, has received Letters of Award/Intent for the development of solar power projects with a cumulative capacity of 32.15 MW under the ‘Captive Power Producer (CPP)’ business segment of the company.
Financial performance
Looking into the company’s financial condition, revenue increased by 67 percent from Rs 215 crore in Q2FY24 to Rs 360 crore in Q2FY25, and during the same period, net profit magnified 100 percent from Rs 35 crore to Rs 70 crore.
Strategic Initiatives:
KPI’s H1 FY25 highlights include 171 MW installed IPP capacity with 1.26 GW orders, 336 MW CPP capacity with 1.148 GW orders, advanced solar technologies, and net debt zero as of September 30, 2024, showcasing robust growth, innovation, and financial strength.
Future Plans:-
The company aims for 10 GW capacity by 2030 through IPP and CPP projects, expanding beyond Gujarat to Maharashtra, Andhra, and Rajasthan. With a strong sustainability focus, it has already reduced CO2 emissions by 4,369,449 tons, underscoring its commitment to environmental responsibility.
Order Book:-
Management expects a 60%-70% topline growth for FY25, driven by a strong order book and ongoing projects. The current EPC order book stands at ₹2,500-3,000 crores, with 70%-80% of this secured in FY25, indicating robust growth prospects.
Margins:-
Management expects a PAT margin of 16% to 18%, with potential improvement as IPP projects grow. KPI’s competitive edge lies in its strong execution capabilities, backed by over a decade of experience in both the wind and solar sectors, ensuring market leadership.
New Development:-
The company is exploring international expansion, though details are still in the early stages. A recent private placement in subsidiary Sun Drops Energia Private Limited will fund capex for a new plant, with the promoter infusing a stake instead of repaying loans.
Company Profile:-
KPI Green Energy Limited focuses on supplying solar electricity through several business sectors. The company designs, builds, owns, runs, and maintains solar power facilities as an Independent Power Producer (IPP) and Captive Power Producer (CPP), both under the Solarism brand.
Written by:- Abhishek Singh
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