Waaree Energies Sees Profit Rise Despite Market Dip After Stellar IPO Performance

Shares of Waaree Energies, India’s largest solar PV module manufacturer, experienced a 6.4% dip in early trade, hitting a low of ₹2,914.60 on the BSE. This came after the company reported a modest 1% year-on-year (YoY) growth in revenue from operations to ₹3,574 crore for Q2 FY24. However, the company showcased robust profitability with a 15% YoY increase in net profit, reaching ₹362 crore.

Recent IPO and Market Sentiment

Waaree Energies made headlines last month with a blockbuster IPO, debuting at a 70% premium and rallying another 40% before facing a pullback. This decline was attributed to global market sentiment, particularly concerns around renewable energy following a political shift in the U.S.

Operational Excellence and Expansion

With an installed capacity of 12 GW as of June 2024, Waaree Energies continues to lead India’s solar PV module manufacturing sector. The company is actively expanding internationally with a 3 GW manufacturing facility in the U.S., signaling its commitment to global growth and diversification.

For FY24, the company’s performance was impressive:

• Revenue from operations surged by 69% YoY to ₹11,398 crore.
• Profit after tax more than doubled, reaching ₹1,274 crore.

Market Outlook

Analysts remain optimistic about Waaree Energies’ long-term prospects. The company is expected to benefit from India’s favorable government policies and Production Linked Incentive (PLI) schemes, which support renewable energy growth. Prashanth Tapse of Mehta Equities remarked, “Waaree Energies presents a compelling investment opportunity as India’s leading solar PV module manufacturer.”

On Monday, the company’s shares closed at ₹3,115.5, marking a 6.8% gain, even as the benchmark Sensex slipped 0.31%. Waaree Energies currently commands a market capitalization of ₹89,503 crore, underscoring its strong standing in the renewable energy sector.

With continued expansion and sector growth, Waaree Energies remains a key player to watch in India’s renewable energy revolution.