Waaree Renewable's Order Book Has A Revenue Potential Of Over Rs 3,500 Crore

Waaree Renewable Technologies Ltd.'s fourth quarter revenues and net profit increased 74% and 83%, respectively on an annual basis.

The company also saw a 38% year-on-year uptick in its order book to 3,263 MW. This order book has a minimum revenue potential of Rs 3,500 crore to Rs 4,000 crore, Abhishek Pareek, group head-finance, told NDTV Profit.

Order Book And Execution

Pareek noted that the company's current order book of 3,263 MW has an execution timeline of 12-15 months. He remained confident that the company could meet this target, as Waaree Renewable's FY25 execution target of 1.5 GW has been surpassed.

The company, on average, earns Rs 1.1 crore to Rs 1.2 crore for every megawatt executed, he noted. This brings the order book's revenue potential to as much as Rs 4,000 crore.

Margin Guidance

Pareek also gave a margin guidance of 26% to 27% going forward, as higher execution and better supply chain procurement would help the company gain the benefits of economies of scale.

Waaree Renewables' fourth quarter margins did see a 100 basis point contraction on an annual basis, due to higher EPC contract expenses, employee costs and other expenses. However, company is investing more on talent and manpower in order to better its execution capacity, Pareek said.

Even though the employee and other costs do stand higher, the company is seeing incremental revenue coming in, according to the top executive.

Supply Chain Localisation

When asked about how volatile geo-politics could hurt the company's supply chain, Pareek highlighted how last year the company focused on the localisation of its supply chain, thereby reducing its import dependency.

The extent of supply chain localisation is currently at 90% as per Pareek, with most of the key components, like solar panels, invertors and controllers, being procured domestically.