This EV stock which deals in the business of EV Leasing, Manufacturing, and Solar consulting and Engineering, Procurement, and Construction (EPC), plans to reduce debt over the period.
Share Price Movement
In Friday’s trading session, Gensol Engineering‘s share price was up by 3.31 percent and closed at Rs. 584.90 from the previous close of Rs. 566.15 per share with a market capitalization of Rs. 2,222.76 crores. In the past year, the stock has given around 55 percent negative returns and underperformed the Nifty Index.
Future Plans
The Management anticipates strong growth in Q4FY25 which aligns with the 42 percent year-on-year growth achieved in the first nine months. They are actively working to reduce debt through organic means and large EV sales transactions.
They plan to execute further transactions like the Refex deal to eliminate EV-related debt completely. Additionally, they are optimizing working capital by converting fund-based limits into non-fund-based limits.
Financials
In its latest filing for the quarter ending December 2024, the company reported a 56.81 percent rise in revenue, reaching Rs.345 crore compared to Rs.220 crore in Q3FY24. During the same period, net profit increased by 50 percent to Rs.18 crore in Q3FY25, compared to Rs.12 crore in Q3FY24.
The short and long-term borrowings and lease liabilities totalling Rs. 1,371.84 crore as of 30th September 2024 reduced from Rs. 1,509.62 crore as of 31st March 2024.
Business segment
Gensol’s 73.82 percent of operating revenue is from Solar EPC, 26.12 percent from Lease, and the remaining 0.05 percent from Others for the December 2024 quarter. The Operating profit for Solar EPC, despite an increase in revenue growth year on year, the profits declined. Further, Leasing turned profitable from a loss in the same period.
Order Book & Fleet
The unexecuted order book as of 31st December 2024 stood at around Rs. 7,000 crore for the Solar Segment. They have more than 8,300 EVs on lease.
Company Overview
Gensol Engineering is a leading provider of renewable energy solutions in India, that specializes in solar power projects. They offer services, such as engineering, procurement, and construction (EPC), and have diversified into electric mobility and energy storage solutions. Recently, the company reduced debt by selling around 2,997 electric four-wheelers to Refex eVeelz.
Written by – Santhosh S
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