The shares of the prominent renewable energy company hit a 5 percent upper circuit after the company’s net profit and revenue zoomed by 66 percent and 38 percent YoY, respectively in Q3FY25.
Price Action
With a market capitalization of Rs 8,912.25 crore, the shares of KPI Green Energy Ltd were trading at Rs 452.65 per share, increasing around 5 percent as compared to the previous closing of Rs 431.10 apiece.
Reason for rise
The shares of KPI Green Energy Ltd have seen bullish movement after reported positive results in Q3FY25, revenue increased by 27 percent on a quarter-on-quarter basis from Rs. 360 crore in Q2FY25 to Rs. 458 crore in Q3FY25. Further, revenue zoomed by 39 percent year on year, from Rs 330 crore in Q3FY24 to Rs. 458 crore in Q3FY25.
The company’s net profit increased by 14 percent on a quarter-on-quarter basis, from Rs. 70 crore in Q2FY25 to Rs. 85 crore in Q3FY25. Further, net profit magnified significantly by 66 percent year on year from Rs 51 crore in Q3FY24 to Rs. 85 crore in Q3FY25.
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.
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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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