Waaree Renewable Q1: EBITDA, Profit Rise Multifold | NDTV Profit - video Dailymotion

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00:00We're now going to be in conversation with Worry Renewable Technologies who posted a

00:03strong set of numbers this quarter and joining us to talk about the quarter gone by and the

00:07future outlook of the company, we're joined by the Chief Financial Officer at Worry Renewables,

00:12Mr. Dilip Panjwani.

00:13Good afternoon, Mr. Panjwani.

00:14Good afternoon, Erika.

00:15Thank you so much for offering us this opportunity to come on your platform.

00:20Yes.

00:21You know, let me ask, let me start off with, you know, asking you your assessment on how

00:23Q1 FY25 went by and if you could maybe give us an outlook for FY25 in terms of top line

00:29and bottom line growth.

00:30You know, from our standpoint, you know, if you look at our performance in terms of year

00:35on year, we have always performed very well.

00:37So from that perspective, you know, we are very happy.

00:41We also want to say that, you know, the way sector is offering opportunities, it's very

00:46significant.

00:47So our outlook remains very, very, you know, hopefully, you know, very strong, both from

00:52year perspective and for next, you know, another four to five years timeline that the government

00:58has set for renewable space, you know, to reach 50% of energy coming from renewable

01:04space.

01:05So, they do offer a very significant opportunity for companies like us to keep the growth rate

01:10momentum going for a considerable period of time.

01:13Yes.

01:14You know, you come over to this side and I also wanted to get and talk more about your

01:19order book.

01:20Now, it's the unexecuted order book stands at over 2,100 megawatt power, but you have

01:26said that the company will be executing the current order book in the 9 to 12 months,

01:31how much of it would be executed in FY25 itself?

01:35So you know, if you look at our order book, in the same period in the last year, we were

01:38at around 800 megawatt only, you know, and now we have doubled in that parameter also.

01:44So in the March end, we were at 2.3 gigawatt, our now order book is now 2.1 gigawatt because

01:49we have executed around 215 megawatt in this year, in this quarter, sorry.

01:54But you know, going by 9 to 12 months, our expectation is that, you know, almost 75%

01:59of the order needs to get executed in the next nine months.

02:02That's about roughly about 1.8 megawatt, 1.8 gigawatt that we are talking, you know, that

02:07translates to around, you know, put together with Q1, that translates to about 2,400 to

02:132,500 crore of existing order book.

02:16We are not even talking of what we are chasing and what we ought to be.

02:20That when you translate to our last year's earnings, it's again two and a half times

02:24or, you know, almost virtually three times larger, you know, growth rate that we are

02:29speaking.

02:30Yes.

02:31You know, correct me if I'm wrong, but, you know, the revenue estimates that you gave,

02:36does that bring the per megawatt revenue potential for the company to around 1.2 crores?

02:41So we are in the range of 1 to 1.2 crore, given and take, you know, what kind of orders

02:46we get, whether it's turnkey or balance of system, but your metric is right.

02:49We are always probably in the range of 1 to 1.2 crore per megawatt.

02:53Got it, Mr. Bhanrani.

02:54I also want to get more outlook in terms of order book growth.

02:58How is the bidding pipeline looking like, maybe on how it's broken down to segment or

03:03project type wise?

03:04And what's your outlook in terms of order growth potential for the financial year?

03:09You know, the business that we are chasing now has also doubled, you know, at the same

03:13period in last year, we were at 7 gigawatt, we are at 15 and odd gigawatt talking to our

03:18clients.

03:19So, you know, that's the most tender business and the CNI potential that we are talking.

03:23So utility scale IPPs also.

03:26So most of the utility scale IPPs are again, you know, tariff driven who have taken biddings

03:30from government or NTPC or Seki and those kinds of stuff.

03:36So it is a mix of both, but the domination, you know, has been utility scale IPPs for

03:41us.

03:42That's not shifting to government as well for us.

03:44So in the order book also, right now we have 30% from government business.

03:50So in the bidding pipeline also, that is moving towards 30-40% now, but more trajectory we

03:55see now it's coming from government.

03:57Okay, so that maybe, you know, the breakup from government orders could increase, you

04:04know, as we grow as well in terms of order book?

04:07Yeah, certainly.

04:08If you look at even the last quarter gone by, you know, where 16 gigawatt of tenders

04:12were issued in March quarter.

04:14And though there was a predominately from government, you know, government driven, policy

04:17driven, where government asks NTPC and Seki and etc. to issue tenders and current policy

04:25also framework government wants to issue 50 gigawatt per annum order tenders in each year.

04:31So that's a big, huge business for us that we are looking from the government side.

04:35Got it.

04:36I also wanted to get your outlook first on the Indian solar industry as a whole.

04:41I know you've identified this segment, especially the rooftop segment, as you know, a potential,

04:46you know, growth opportunity for the company.

04:48So I wanted to get your outlook on the entire industry as a whole first.

04:52You know, the outlook, you know, no one can, you know, beat this kind of an environment

04:56the government is offering.

04:57There are three to four opportunities that the government is offering.

05:00One is they want to reach 50% of renewable energy, they want to reach net zero, they

05:05have firm number plan of 280 gigawatt from solar to 20 from wind, 500 gigawatt put together

05:11for the renewable.

05:12Now they're talking of battery energy storage system, that's a 42 gigawatt opportunity roughly

05:19translating to 14 lakh crores.

05:20There's a pump storage, there's an RTC that's happening, there's a hybrid that's happening.

05:26Then there's a CNI opportunity that's happening separately over and above that.

05:29Then there's a carbon tax that's going to come in Europe and Indian companies exporting

05:33there must transform their energy to energy transition into renewable space.

05:37There is an 100 Club that's happening.

05:39So there's so much happening, you know, to put a number would be also an underestimate

05:43in this sector.

05:44The inflection growth is just now being made visible in terms of the numbers that the companies

05:50that are importing companies like ours.

05:52Yes, you know, I get that, you know, there have been many policy pushes and a lot of

05:56support from the government as well, you know, solar, you know, it's almost 85% of our renewable

06:01capacity right now.

06:03But from the, what kind of challenges could pose from a company or an industry point of

06:09standpoint?

06:10You know, it has been going good as of now, there are no significant challenges that we

06:14observed, including the supply chain challenges that we were talking.

06:18And you know, the module capacity is available, the vendor ecosystem has developed in India.

06:23So there are no significant, except, you know, manpower could be a challenge in future, because

06:27to scale up very significantly higher, you need a qualified manpower.

06:31But from a WARI perspective, we are good for now, because, you know, we don't need

06:35significant manpower to add to deliver this kind of growth also.

06:39Yes.

06:40And I want to get more perspective on your ground, ground mounted and rooftop solar projects.

06:45What's the kind of traction you've been getting in both these segments?

06:48And you know, how do you see growth, you know, going forward?

06:51You know, significantly higher orders we are getting still from ground mounted, but the

06:55rooftop opportunity also is between 30 to 40 gigawatt in India, that's yet untapped.

07:00So we do have orders from rooftop, you know, in the current quarter also, we got one order

07:06on the rooftop, but good to speak that we also got a floating solar order.

07:11The order may be small, but it speaks that the country is moving in a direction where

07:15all forms of, you know, rooftop, ground mounted, floating solar, all these kinds of orders

07:21are now coming up, which we have been talking for, you know, the last couple of years.

07:26Yes.

07:27And, you know, Mr. Pauchani, you also mentioned the opportunity in terms of green hydrogen

07:32and battery storage.

07:34Could you maybe give us more color on what the company has in terms of orders in hand

07:38and you know, the execution timeline for the same?

07:40I believe you all did get a contract to set up a one megawatt green hydrogen plant.

07:44So that was a pilot project, but in terms of very significant orders, you know, there

07:49are investments yet to happen.

07:51And that's a significant opportunity apart from those, the line up of opportunities of

07:55RTC hybrid, which I spoke.

07:57The green hydrogen also will need solar plants to be set up.

08:00So that opportunity we are forcing in the coming year to come up for companies like

08:04us.

08:05Okay.

08:06So, am I right to assume, correct me if I'm wrong, that your bidding pipeline could also

08:10see some kind of projects related to green hydrogen battery energy?

08:14Yes, you know, we will be now chasing even those pipeline as well as going forward.

08:21Yes.

08:22And lastly, Mr. Bachani, before I let you go, I just want you, you know, if you could

08:26talk about the growth strategy going forward in terms of O&M markets, you know, international

08:31markets as well as, you know, growing your EPC segment.

08:34So you know, EPC segment, as I told you, you know, it's a sitting opportunity and you are

08:38to deliver the best to the customers like we have been in this business for a decade.

08:42But from an O&M perspective, the good to talk about is we are already sitting at half gigawatt

08:47of portfolio assets.

08:49We have 1.5 gigawatt of orders in our hand as of today in terms of once we complete these

08:55EPC projects that will translate to O&M tail business for us.

08:58These are sitting orders.

08:59We are also equally chasing O&M as we chase EPC, you know, because the tail business comes

09:04naturally to us, you know, because we have been in this business for so long.

09:08So that's our strategy going forward that we keep focusing on diversification into hybrid

09:13RTC, battery energy storage system, O&M, into various forms of O&M.

09:19That's the strategy that the company is doing.

09:22As far as international business is concerned, you know, right now, the domestic opportunity

09:25itself is quite long.

09:26But at the right time, we will definitely, you know, approach international markets as

09:30well.

09:31Well, thank you, Mr. Bhandrani for giving us outlook on, you know, the growth process

09:35of your company and wish you all the best.

Waaree Renewable Q1: EBITDA, Profit Rise Multifold | NDTV Profit

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