KPI Green Energy Targets Up To 60% Revenue Growth Per Annum Till FY30 On Strong Order Book

KPI Green Energy Ltd. aims to clock an annual revenue growth of up to 60% till FY 2030 on the back of a strong order book, according to Faruk Patel, chairman and managing director (CMD), KP Group.

"Revenue-wise, we are growing about 50 to 60% every year, which will continue with new orders," Patel told NDTV Profit. 

Commenting on the sustainability of such high growth numbers in the long run, Patel emphasised that the KPI Group as a whole aims to achieve revenue growth of 60% every year till FY 2030.

The company recently secured a 300-megawatt solar project from the state-owned Coal India Ltd. The order, which is the largest ever for the company from a central government entity, is scheduled to be executed on an engineering, procurement, and construction (EPC) basis in Gujarat's Khavda.

The contract for the ground-mounted solar plant also includes operation and maintenance (O&M) services for five years.

"The order is 405 DC and the 300 AC project, which is the highest and biggest order for the KPI to date in the EPC, or you can say the Captive Power Plant (CPP) segment. This (order) will create a revenue of Rs 1,311 crore for KPI in the next year," Patel said.

He added that the company plans to finish the project earlier than the 12-month timeline mentioned in the contract.

"We will try to do it early because we are already doing this Khavda 240-megawatt Independent Power Producer (IPP) project, which we are going to charge by March," Patel said, while mentioning that the company's team has already been deputed at the site.

Commenting on the company's existing portfolio, the top executive said, “Today, we have 1,260 megawatt IPP in our hands. With this latest order, CPP or EPC projects are at 1,562 MW. We have already energised IPP of 171 MW and 336 MW of EPC, or CPP. So altogether, if you say, KPI portfolio has a 2,823.66-MW order and 508 MW we have already energised. So altogether, you can say 3.3 gigawatts we will be making in the next financial year."

He revealed that with the fresh orders, KPI Green Energy will also see an IPP contribution to its portfolio at 33% from the existing 17%.

"You can see that revenue from the IPP projects will be 33%. So you can say more than what we have already in hand for the IPP from the government is 1.4 gigawatts," he added.

Shares of KPI Green Energy Ltd. were trading 1.07% lower on Thursday at Rs 805.60 apiece as of 12:57 p.m., against a 0.25% decline in the benchmark NSE Nifty 50.