In Short : Waaree Renewable aims for threefold growth in FY25. This ambitious target reflects the company’s commitment to expanding its renewable energy portfolio and driving significant advancements in sustainable energy solutions.
In Detail : Current order book at Rs 3,200 crore, says CFO
Armed with a robust order book of Rs 3,200 crore or 2.3 gigawatt (GW) through its EPC (engineering, procurement and construction) contracts, Waaree Renewable Technologies is eyeing a threefold growth in financial year 2024-25.
Of this, the company plans to execute 1.8 GW of projects in FY25 and successfully complete the cumulative 2.3 GW in the next 18 months.
“The sector is very promising for us, the prospects are good. Our order book position is quite healthy and we plan to maintain the momentum in the coming year as we did in FY24,” Dilip Panjwani, chief financial officer (CFO) at Waaree Renewable Technologies, said.
The company also has another 13 GW of capacity in its bidding pipeline and hopes that the share of contracts from the public sector companies in its order book will increase significantly this year with the government’s increased efforts in transitioning to renewable energy sources.
“Last year, the share of PSUs in our order book was just 10%. Now, in terms of volume, it has gone up to 15% and in terms of value, it has gone up to almost 35%,” Panjwani said. “We see the share of PSUs increasing as the government is coming up with a lot of investments in this sector.”
In FY24, the company’s bidding pipeline stood at 10 GW. “This has increased to 13 GW this year. So, the growth rate momentum is increasing by more than 30%,” Panjwani added.
The company currently has over 20 projects in its pipeline and has already completed four-five of them, the CFO said. It now plans to complete the remaining projects by the end of the current financial year.
Waaree also aims to diversify into round-the-clock (RTC) renewable energy solutions and energy storage systems while expanding its EPC business. After having established itself as a prominent choice for industry in large-scale projects, the company is targeting small-scale or under megawatt (MW) projects.
“From a diversification perspective, there’s a lot of momentum happening in under MW projects. Right now, we are actually bidding for more than MW scale projects. There are also 500 kilowatt, 2 megawatt and 5 MW projects,” Panjwani said. “Our margin profile is better. The investment climate is better because of private investments. We are focusing on that segment, too, going forward and FY25 should see some action on that front.”
Panjwani sees great potential in the solar business and while that will continue to remain the company’s primary focus, it will also scout for green hydrogen projects as and when they come up. He noted that the company now intends to work in RTC and storage system. Moreover, the company wants to remain focused on the domestic market before taking over projects globally.
“If you look at the domestic market landscape, it is offering a huge potential. We want to first focus on domestic fulfilment before embarking overseas. We will definitely approach the global market at the right time,” said Panjwani.
The company posted an over fourfold jump in its consolidated net profit in Q4FY24 at `54.18 crore against `12.28 crore in the same period of FY23 on the back of higher revenues.
