The India’s solar industry is expected to benefit from favourable government policies, declining solar costs and technological advancements. The sector added 24.5 GW in 2024, with expectations to surpass 18 GW in new installations in 2025. With Increased funding and supportive policies, it is anticipated that this momentum towards achieving 500 GW by 2030.
In this article, we will look into Premier Energies, their business segments, future plans, and more. However, investors should do their research before investing.
Price Movement
Premier Energies Limited‘s stock in Friday’s session closed at Rs. 873.05 per share down by 5.41 percent from the previous closing price of Rs. 923. The stock has delivered a return of around 3.82 percent and has performed par with the Nifty Index in the from the listing period.
From its 52-week high price of Rs. 1,387.10 per share, the share price has dropped around 37.05 percent near to its current market price.
BlackRock Stake
BlackRock Institutional Trust Company managed National Pension Service has made investments worth ~Rs. 29.74 Crores in Premier Energies Limited during its IPO through the anchor book.
Business Segments
As per the recent December 2024 results, the company recognizes its operational revenue from manufacturing and selling solar products and related project activities as its sole segment.
In Q3FY25, Premier’s revenue from operations from Module contributed around 63.5 percent, followed by 32.8 percent from Cell and the remaining 3.7 percent from Others. Geographically, 96.6 percent is earned domestically and the remaining 3.4 percent from exports for the December 2024 quarter.
Future Plans
Premier Energies plans to expand aggressively by setting up a 1 GW TOPCon cell and module facility by Q1FY26 and a 4 GW line by Q1FY27. With these expansions, its total capacity will reach 7 GW per annum for solar cells and 9.1 GW for modules by June 2026. Additionally, it is investing in backward integration with a 2 GW wafer facility, expected by FY26, and an aluminum frame plant with a 36,000 metric ton annual capacity.
The company is also maintaining a strong balance sheet, reducing its net debt-to-EBITDA ratio from 9.51 to 3.49 percent. These strategic moves position the company to leverage strong domestic demand, government policies, and advancing technology in the solar industry.
Order Book Analysis
The company has an order book of 4,539 MW worth Rs. 6,946.1 crore as of 31st December 2024. The order book comprises Modules which contributed around 63 percent, followed by 36 percent from Cell and the remaining 1 percent from Engineering, Procurement & Construction (EPC). For Q3FY25, the order inflow was Rs. 2,239.9 crores.
Financial & Operational Performance
Their Q3FY25 results show revenue from operations of Rs. 1,713 crore which increased by 140.58 percent year on year, from Rs. 712 crore in Q3FY24 and a 12.18 percent increase from Rs. 1,527 crore in Q2FY25.
Its net profit increased by 493 percent year-on-year, from Rs. 43 crores in Q3FY24 to Rs. 255 crores in Q3FY25. Quarterly, the profits improved by 23.78 percent from Rs. 206 crore.
For this quarter, there was a change in depreciation costs, based on evaluation of its plant and machinery in certain subsidiaries related to manufacturing of solar cells and modules and based on the re-estimation, the value rose by Rs. 72.77 crores.
The EBITDA margins increased to 31.42 percent from 17.56 percent on a year on year basis. Consequently, the PAT margins improved to 14.59 percent from 6.05 percent in the same period. Net debt increased to Rs. 1,917.7 crores for Q3FY25 from Rs. 1,193.7 crores on a year on year basis.
The capacity utilisation for Cells and Modules for Q3FY25 increased to 96 and 74 percent from 65 and 59 percent respectively.
The Price to Earnings reduced to around 48 times its TTM EPS from 220 times earlier due to rapid increase in earnings.
About the company
Premier Energies Limited was established in 1995 and is India’s second-largest integrated solar cell and module manufacturer. It offers EPC services and operates globally, providing sustainable energy solutions with advanced technology and a strong presence in over 30 countries.
Written by Santhosh S
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