Waaree Energies Ltd has announced its quarter 2 Result for FY 2025 on Nov 18, 2024. Here we have discussed some outcomes of the results.
About Waaree Energies
WSS Energies Limited is an India-based company founded in 1990 and today is the largest manufacturer and exporter of solar photovoltaic (PV) modules. As of June 2024, the installed capacity is 12 GW, and the accumulated domestic market share is 21% for solar modules and 44% for export.
Waaree has a broad portfolio of solar products, such as mono-perc, bifacial, and flexible solar panels for both residential and commercial purposes. With many completed projects over 10,000, the company has been able to demonstrate its proficiency and support for solar power solutions. In light of innovations and sustainability, Waaree Energies is in an excellent place to benefit from the increasing need for solar energy in India and worldwide.
Quarter 2 Results (Q2 FY25)
Waaree Energies Limited reported strong financial results for the second quarter of FY25, ending September 30, 2024:
- Net Profit: From Rs 320 crore in the same quarter last year, it has gone up by 19 percent year-on-year to Rs 376 crore.
- Revenue from Operations: Increased to Rs 3,559 crore—up from Rs 3,663 crore in Q2 FY 24, registered a minor rise.
- EBITDA: The consolidated EBITDA on the product was Rs 577 crore, where the operating profit margin was up at 16% compared to 14% in the previous year.
- Profit Before Tax: Declared at Rs 477 crore, higher than Rs 407 crore in Q2 FY24, suggesting an increase of 16%.
- Earnings Per Share (EPS): Raised from Rs 12.04 in the same quarter of the prior fiscal to Rs 13.55 this fiscal.
| Financial Metric | Q2 FY25 | Q2 FY24 | Year-on-Year Change |
| Net Profit | 376 crore | 320 crore | +19% |
| Revenue from Operations | 3,663 crore | 3,559 crore | +2% |
| EBITDA | 577 crore | 505 crore | +15% |
| Profit Before Tax | 477 crore | 407 crore | +16% |
| Earnings Per Share (EPS) | 13.55 | 12.04 | +11% |
| Operating Profit Margin | 18.24% | 15.01% | +2 percentage points |
Price Action
The stock of Waaree Energies is trading at Rs 3016.10 on November 19, 2024, on the National Stock Exchange (NSE), showing a 3.09% decrease from previous sessions. Since the IPO listing at Rs 2,500 per share, the stock has grown up to its 52-week high of Rs 3,743 on November 6 to become one of the most favored stocks by investors.
This, we believe, is a result of the upbeat sentiment towards renewable space and the strong financials displayed by the company. Experts have pointed out that growth in the demand for solar solutions in India and abroad have helped the stock and placed Waaree Energies as a contender for the renewable energy business.
Brokers update and share pricing targets
After a splendid performance in Q2, many brokerage firms have hiked the price target of Waaree Energies. Target prices have been determined to be between Rs 3,200 and Rs 3,800 per share in light of future earnings prospects and a sound market environment. Pundits credit this to high revenue growth and profitability levels as critical parts of the firm, which give the forecasts their optimism.
The future looks bright because of the company’s expansionary initiatives, the launch of a manufacturing plant in Houston, Texas. This expansion will also help to improve production capacities, as well as to satisfy the growing demand for solar products at both national and global levels. In conclusion, the brokerages have favorable recommendations in regard to the investment potential of Waaree Energies in the solar energy solutions RE market.
Industry Environment and Future Possibility
India’s renewable energy has witnessed tremendous growth in the last few years due to government policies to increase energy production, growing energy needs, and a change towards sustainable energy across the world. In its renewable energy policy, the Indian government has laid down a target of realizing 500 GW of renewable power by 2030, with the help of solar energy particularly.
Complementing this is the constantly favorable regulations noticeable and decreasing price of solar modules gives Waaree Energies more market opportunities to conquer due to the future-focused approach of the company and its constant development of new and better products. It can successfully address the growing demand for solar solutions.
Moreover, the diversification trend in consumer interest towards energy security and sustainability is also evidence that boosts the long-term growth of Waaree. Analyzing the market and company situation and its strategic actions, one can conclude that Waaree Energies has the potential to maintain high growth rates in the conditions of the changing market for renewable energy sources.
Conclusion
This paper finds that Waaree Energies Limited is strategically positioned and financially sound in the Indian solar energy market. Organically, the operational success of this company speaks for its sterling second-quarter financial result, capped with a realistic organizational management style that augurs well with the fast-emerging markets in the renewables power solutions domain.
Contemporary and governmental support for the utilization of renewable energy products, as well as an increasing consciousness of various companies and organizations around the world, have opened up a favorable environment for investment in the Waareegroup. Analyzing the price active target, brokerage firms continue to work on higher predicted values compared to their actual target, demonstrating the investors’ confidence levels in the company.
As an organization, Waaree Energies is nevertheless setting new standards and branching out through new market segments, for which it is destined to become an essential stakeholder in the renewable energy market of India, making it a compelling prospect for investors interested in the opportunities of the green energy industry.
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