A leading solar company’s stock rose 5 percent on Monday morning after securing an Rs.150 crore order for 100 MW N-type TOPCON modules, highlighting its growing presence in the renewable energy sector.
Share Price Movement
During Monday’s trading session, Solex Energy Ltd’s share price surged 5 percent to an intraday high of Rs.1,424.95 per share, up from its previous close of Rs.1,355.50 apiece. The price has since retreated and is currently trading at Rs.1,408.00 per share.
Rationale for the Rise
Solex Energy Limited has secured a significant work order from Sprng Energy Private Limited, an esteemed affiliate of the renowned Shell Group, based in the United Kingdom.
The order involves the supply of 100 MW N-type TOPCON 585/590 Wp modules, valued at Rs.1,500 million, inclusive of all duties and taxes. This milestone underscores Solex Energy’s expertise and growing stature in the renewable energy sector.
Manufacturing Capacity
Solex Energy’s current production capacity is 700 MW, with an additional 800 MW capacity under development, funded by Rs.729.3 million raised through a preferential allotment.
This expansion is expected to be operational by December 2024. Following an initial increase of 1.5 GW, the company plans to expand its module manufacturing capacity to 15 GW by 2030.
Additionally, it is exploring the development of a new cell manufacturing facility, starting with a 2 GW capacity, designed for future scaling up to 5 GW.
Domestic and International Presence
SOLEX Energy Limited, headquartered in Surat, Gujarat, India, has a strong domestic presence. Its manufacturing facility produces 1.5 GW of solar PV modules. The company is expanding internationally, particularly targeting European markets, the UK, and the UAE, supported by its recent MCS certification.
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Financial performance
For the quarter ended September 2024, Solex Energy Ltd reported revenue of Rs.273 crore, rising remarkably by 1,200 percent from Rs.21 crore in Q2 FY24. Net Profit rose exceptionally to Rs.13 crore, nil profit in Q2 FY24.
The company’s return ratios show strong performance, with a Return on Capital Employed (ROCE) of 17.9 percent and a Return on Equity (ROE) of 20.8 percent. The current ratio
stands at 1.86, indicating good liquidity, while the debt-to-equity ratio is relatively low at 0.56, suggesting a manageable level of debt.
About the company
Solex Energy Limited, located in Surat, Gujarat, specializes in manufacturing a range of solar energy products, such as high-efficiency solar photovoltaic (PV) modules, solar water heaters, and solar lanterns. The company also produces solar water pumps and street lighting systems, with a strong focus on providing sustainable and reliable energy solutions.
Written by – Siddesh S Raskar
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