Stock market today: Shares of Waaree Energies, one of India's leading renewable energy companies, rose by 14% in early morning trade on January 31, reaching ₹2,505, following the release of the company's December quarter performance, which exceeded Street estimates.
The company, on Thursday after market hours, reported a 260% improvement in its consolidated net profit to ₹507 crore, compared to ₹141 crore in the same quarter a year ago. Its revenue from operations surged 117% to ₹3,458 crore in the October to December quarter of the financial year 2024-25, up from ₹1,596 crore in the same quarter a year ago.
The company's primary source of revenue, from Solar Photovoltaic modules, rose 122% to ₹3,108 crore in the October to December quarter, compared to ₹1,402 crore in the same period a year ago
Waaree Energies currently has a manufacturing capacity of 15 GW for solar modules and 5.4 GW for solar cells. The energy transition opportunity, particularly led by solar, is immense, with the industry expected to double by the end of this decade. Global renewable energy (RE) capacity is projected to grow to 9.8 TW by 2030, while India's RE capacity is set to reach 500 GW by the same year.
In 2023, solar accounted for 76% of global RE capacity additions. The global solar capacity is projected to hit 5.8 TW by 2030, while India has set a target of 280 GW of solar capacity by 2030.
India added approximately 24.5 GW of solar capacity and 3.4 GW of wind capacity in 2024, according to JMK Research, which represents an over two-fold jump in solar installations and a 21% rise in wind installations compared to 2023.
Impressively, the solar capacity added in 2024 is the highest recorded in any single year so far. These fresh additions have brought India's total installed renewable energy (RE) capacity to 209.44 GW as of December 2024, contributing nearly 45% to the total power capacity of 462 GW, as per the Ministry of Power.
The company also provided an update on its expansion plans, stating that trial production has commenced at its 5.4 GW solar cell plant in Chikhli, Gujarat, while commercial production has been initiated at its 1.6 GW module plant in Texas, USA.
In terms of energy transition, the company mentioned that it is making strategic investments in green hydrogen and electrolyser technologies ( ₹551 crore), battery manufacturing ( ₹2,073 crore), renewable power infrastructure ( ₹650 crore), and inverters ( ₹130 crore), as per company's earnings filing.
Additionally, the company has entered into a Share Purchase Agreement for the acquisition of Enel Green Power India for ₹792 crore. On the production-linked incentive (PLI) front, the company has received a Letter of Award (LOA) for a 300 MW electrolyser manufacturing unit and mentioned that an LOA for a 90kT green hydrogen production unit is still awaited
The company's shares debuted on Dalal Street in October 2024, after raising ₹4,321.44 crore from investors. The stock was listed at ₹2,338 apiece, compared to the IPO price of ₹1,503. The issue received a stellar response from investors, as it was oversubscribed by 76 times.
At current levels, the stock is trading 59% above its IPO price.
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