Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Waaree Renewable Technologies Ltd (BOM:534618, Financial) reported a significant increase in quarterly revenues, reaching INR 527.47 crores, a growth of nearly 3.5 times year-on-year.
- The company's EBITDA for the second quarter of FY25 grew by 133.27% year-on-year, indicating strong operational performance.
- Waaree Renewable Technologies Ltd has an unexecuted order book of 1.7 gigawatt peak, providing a solid pipeline for future revenue generation.
- The company is well-positioned to capitalize on India's renewable energy growth, with a focus on solar installations and innovative projects.
- Waaree Renewable Technologies Ltd is experiencing a robust pipeline of 17.8 gigawatts, indicating strong future business prospects.
Negative Points
- Despite the highest ever quarterly revenue, the EBITDA margin has reduced to a five-quarter low, raising concerns about profitability.
- The company faces competitive intensity in the renewable energy sector, which could impact future order wins and profitability.
- There is a dependency on government initiatives for sector growth, which could pose risks if policy support changes.
- The order book execution timeline is lengthy, with a 9 to 12-month period, which may delay revenue realization.
- The company's focus is primarily domestic, with aspirations for international expansion yet to materialize, limiting global market exposure.
Q & A Highlights
Q: What is the current order book and its value in INR?
A: The current order book is 1.7 gigawatt peak unexecuted, amounting to approximately INR 2,500 to 2,700 crores. - Dilip Panjwani, Chief Financial Officer
Q: How do you see the pipeline for the second half of the year?
A: The pipeline is currently at 17.8 gigawatts. The pace is increasing, and we do not foresee any constraints in terms of resources or manpower. - Dilip Panjwani, Chief Financial Officer
Q: Despite high quarterly revenue, EBITDA margins have reduced. Can you explain this and the future margin trajectory?
A: We aim to maintain sustainable EBITDA margins at double-digit levels, near 15%. The current order book supports this margin level, and we will update stakeholders as new orders come in. - Dilip Panjwani, Chief Financial Officer
Q: How do you see the order book evolving over the next 1 to 2 years?
A: The sector offers significant opportunities, driven by government targets for renewable energy. We are optimistic about converting our pipeline into orders, with a focus on large-scale projects. - Dilip Panjwani, Chief Financial Officer
Q: Are there any plans for international expansion in EPC?
A: We aspire to enter international markets, particularly in the Middle East and Africa, but currently, 100% of our orders are domestic. We will update stakeholders as opportunities arise. - Dilip Panjwani, Chief Financial Officer
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
