Solar Stock Plummets After Profit Dip, Announces Dividend
A major solar energy solutions provider, specializing in engineering, procurement, and construction (EPC) services, experienced a sharp decline in its stock price. This drop followed the release of their latest financial results, which revealed a significant year-over-year decrease in net profits.
Stock Performance
During a recent trading session, the company's stock price fell dramatically, hitting an intraday low of 10.55%. This was a substantial drop from the previous day's closing price. After opening at a higher price, the stock is currently trading at a lower level. This significant movement has resulted in the company's market capitalization being revised to approximately Rs. 11,174.75 crore.
Financial Results Overview
Q3 FY25 Performance
The company's consolidated revenue saw an increase of 11.15% compared to the same quarter of the previous year, rising from Rs. 324.19 crore to Rs. 360.35 crore. However, this was offset by a significant 30.27% decrease compared to the previous quarter's revenue of Rs. 524.47 crore.
Profitability Metrics
The company's EBITDA experienced an 18.1% decrease, dropping from Rs. 87.81 crore to Rs. 71.92 crore. Additionally, the profit after tax (PAT) margin also declined from 19.81% to 14.84% when comparing the same quarter year-over-year. Net profit for the quarter saw a 16.74% decrease, falling to Rs. 53.48 crore from Rs. 64.23 crore in the previous year. There was also a slight decrease when compared to the previous quarter. Basic earnings per share also decreased by 20.23%.
Dividend Announcement
Despite the profit decrease, the company has declared an interim dividend of 50% on the face value of its shares which translates to Re. 1 per equity share. The dividend payout is scheduled with a record date of 25th January 2024.
Order Book and Future Projects
The company's unexecuted order book stands at 3.4 GWp, with projects expected to be completed in the next 9–15 months. They also have a robust bidding pipeline of 23.37 GWp, which shows continued potential for growth within the renewable energy sector.
Strategic Expansion and Recent Orders
The company is strategically expanding into the EPC sector for data centers, both in India and internationally. They have recently secured key orders, including a large ground-mounted solar PV project and an Independent Power Producer (IPP) plant.
Client Portfolio
The company's client base is diverse, featuring major corporations across various industries, including ArcelorMittal, L&T, Reliance Industries, Aditya Birla Group, NTPC, Adani, PTC Group, Mondelez, Bharat Petroleum, and Acciona, among others.
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