Advait Energy Targets Up To 18% Margin Growth Over Next Two To Three Years
According to Managing Director Shalin Sheth, Advait Energy's growth strategy is based on creating and breaking entry barriers and developing innovative products.
Power transmission solutions provide Advait Energy Transitions Ltd. is expecting a margin growth of 13% to 18% over the next two to three years on enhanced production capacity. The company expects revenue from its new production facility by April 2027.
“Our range, on a company basis, will be about 13% to 18%,” said Shalin Sheth, Managing Director, Advait Energy.
Speaking to NDTV Profit on Monday, Sheth said that the company started a New and Renewable Energy division (NRE) in 2022-23, and the margins for it could be a bit lower for two to three years, but overall the company will be able to maintain the margin. “After 3 years, our margin story will continue for the NRE side also,” he said.
As a specialist in power transmission, a major chunk of the company’s revenue comes from the Power Transmission and Solutions (PTS) division, he said. Once the company’s NRE capabilities are augmented, both PTS and NRE will contribute equal revenues.
“Since we have been growing at 30% to 45% in the last 3 to 5 years, the main growth has come from our PTS division. At the same time, from the NRE division, we plan to manufacture green handling equipment like electrolysers and fuel cells. So, that is one part of the NRE. We are also into battery energy storage and EPC (Engineering, Procurement, and Construction) solutions for solar, and we are also providing carbon solutions. These three segments are where we are looking forward to the growth of the next three to five years, and we believe that in the next three to four years, we will be able to have equal revenue from both the PTS and NRE.” he said.
According to Sheth, the company’s growth strategy is based on creating and breaking entry barriers and developing innovative products. “Every second year we are coming up with a new manufacturing line. Our strategy is to create entry barriers and to enter into the business where there is an entry barrier and look forward for growth where we can sustain the business on its own,” he said.
Responding to a question on the competition facing the company, he said that the market holds enough growth opportunities, and the company doesn’t expect fierce competition over the next three to five years.
Shares of Advait Energy Transitions were trading 4.05% higher at 12:12 p.m. on the BSE, compared with a 1.19% rise in the Sensex.
