Premier Energies

“As new capacity ramp up over the next few quarters, we expect a major step up in financial performance of the company.”

“And we are hopeful that we will be able to maintain margins subject to cost environment volatility.”

“In general, we are expecting the business to, like we said last time, more than treble in revenues over a period of three years.”

“Next few quarters, we are expecting a significant step up in the performance of the company, with the Naidupeta plant ramping up, Seetharampur volumes also picking up because of the increased cell production.”

“I am happy to update that all our expansion initiatives, including battery energy storage, are on track.”

“On the Battery Energy Storage System, we expect to operationalize the Battery Energy Storage System in Q2 2027.”

“So our plan is to do cell to pack and pack to container.”

“Water allocation has been done. Electricity power approval also has been done, and we have laid the power lines to the plant in 169 acres.”

“We would not need to do any. We would not need to do any additional capex.”

“Our operational cell plants delivered a record capacity utilization in the quarter”

“A highlight of the quarter was new order wins totaling INR4,001 crores for cells and modules in a highly competitive market, taking our total order book to INR16,260 crores.”

“The transformer business also saw a healthy intake, reflecting higher capacities, taking the total order book in the transformer company to INR330 crores.”

“So in total, I would say about 68%-70% of the total order book is for the domestic manufacturing business.”

“So we have given you the breakup between the cell and module business, which is about 48% each of the total order book.”

“Yes, about 12- 14 months.”

“Transcon, our subsidiary, has reported another good quarter with revenue and PAT of INR122 crores and INR18 crores respectively.”

“The company has completed all the type testing for all the full range of power transformers, except for the EHV segment.”

“With more module capacity coming in-house, we would prefer to use the cells for our own captive consumption and gradually reduce our solar cell sales.”

“We are quite confident that if Surya Ghar 2.0, KUSUM 2.0 comes in, the mix what we have today will only get better.”

“we will be able to win BESS business from our IPP customers and C&I customers, and we will qualify for the 40% local content.”

“Solar capacity addition has been steady throughout this year, with growth in PM Surya Ghar Yojana compensating for slight weakness in the utility scale segment.”

“We expect project commissioning progress to accelerate over the next six months, taking the annual capacity addition to around 50 GW AC territory, surpassing last year's numbers.”

“And the demand at the retail level is quite strong.”

“I said IPP pricing in the market for next year are around INR20, and I think they have taken this order at about INR17 or INR18, which was at a discount to be able to get credentials, and that is not reflective of the market prices.”

“Now you have seen the BESS initiative with the VGF scheme, and the KUSUM and Surya Ghar Yojana, the second version of both these schemes is also due for announcement, I would say, over the next one or two months.”

“EBITDA and PAT margins in the solar manufacturing business came in at 29.3% and 17.9% respectively. The PAT margin has moderated slightly because of increase in depreciation and reduction in other income.”

“There, the price prevailing in the market is anywhere between INR23- INR24 per watt on a DCR module.”

“Then the next segment is the KUSUM C and the C&I market, where we expect realizations to be around INR21.5.”

“There, we see prices going to as low as about INR20.5 or even INR20, if you are talking about up to March 2027.”

“Now, when you average out all these prices, you get an average of around close to INR21.5-INR22 on the DCR module.”

“Our balance sheet strength, as reflected in low cost of capital and an A+ credit rating, is a key pillar of our business competitiveness.”

“The buildup is largely on the raw material side. There is no major change in the finished goods inventory.”

“I would say this is temporary in nature. As these new plants stabilize, revenue starts coming into the numbers, you will see the numbers fall back to the normal scenario.”

“I would say latest by March quarter, yes.”

“We produce goods in the factories based on firm orders from customers.”

“We have enough cash flow from operations to fund our capex plans, which we have announced. There is no QIP planned in the near future.”

“At the same time, we are also evaluating several new primary and secondary growth opportunities.”

“That said, our partnership with RCT is going to give us this reach for us into those markets with the Battery Energy Storage solutions going to be manufactured in India.”

“Having said that, we will look at acquisitions very selectively, wherever we feel that we can use these acquisitions to cut our time to market, particularly when the valuations are also very attractive.”

“I think we have been pretty open that U.S. and Europe remain geographies of interest to us.”

“If you talk of MIP, we are clear that Make in America is the answer, and hence we are at advanced stages to finalize our factory location in the U.S.”

“Last quarter, we had a higher number because the steel and the copper costs went up, so we got a variable increase in those orders, whereas we had enough inventory which we had hedged for.”

“Commodity price inflation in wake of the Middle East war has hit the solar sector with material increases in prices of key raw materials and delay in delivery timelines.”

“We have not have a firm tie-up as on date. But as the plan progresses, we will enter into a firm supply arrangement.”

“Obviously, we are anticipating some kind of controls, and we are kind of working with our technology and vendor partners as to finding the best way around some of these restrictions.”

“On cell line, we are fully covered. On ingot-wafer, we will be waiting to hear from the Chinese government after the November 15th, but we are quite hopeful that there would be a solution and that we would be able to get our equipment well on time.”

“We do not see this as a big risk in terms of our ingot wafer equipment sourcing.”

“The company has reported another sterling quarter with total revenue increasing by 38.2% Y-o-Y to INR2,656 crores on a consol basis.”

“EBITDA and PAT have grown by 17.8% and 30.8% Y-o-Y to INR760 crores and INR462 crores respectively.”

“There is no block from the promoters. There is no block planned even in the next couple of quarters or even the couple of years.”

“And from GEF also, we verified with them, they have not appointed Citi, and there is no block.”