KPIs Green Energy Impact in the Renewable Sector

KPI Green Energy: India has a renewable energy capacity of 179.5 GW, making it the world’s fourth largest country in wind and solar power generation. India’s renewable energy sector is on the rise, with green stocks surging on the back of ambitious government targets, cost cuts and positive investor sentiment.

As the demand for green energy continues to surge, the notable performance of KPIs in the stock market has caught many people’s attention. With a one-year return of 238% and a five-year return of 476%, this stock performed exceptionally well.

In this article, we explore various aspects of KPI Green Energy Limited and explore its business overview, segment analysis, growth strategy, and future prospects. By understanding the trajectories of companies and the broader trends shaping the green energy sector, investors and enthusiasts alike can gain insight into the KPIs and the promising future of India’s overall renewable energy landscape.

KPI Green Energy Limited

Company Overview

KPI Green Energy Limited is a leader in renewable energy, known for its commitment to sustainable power generation. Headquartered in Gujarat, India, the company has extensive experience and operates as an Independent Power Producer (IPP) and Captive Power Producer (CPP).

One of the characteristics of KPIs is their dual function. As an IPP, the company contributes to the overall energy system by selling power on the open market. At the same time, as a CPP, KPI increases energy self-sufficiency by producing usable electricity.

Let’s learn more about the segments and their contribution to the company’s revenue.

segment analysis

The company has two main business segments: IPP and CPP.

Independent Power Producer (IPP) Sector

KPI Green Energy Limited acts as an Independent Power Producer (IPP) specializing in the development, ownership and operation of grid-connected renewable power projects. The company generates revenue by selling power equipment for various projects, including solar and wind-solar hybrid installations, by entering into power purchase agreements (PPAs) with third parties. This segment contributes 18% to the company’s revenue.

Captive Power Producer (CPP) Segment

The Captive Power Producer (CPP) segment, with a revenue contribution of 82%, focuses on developing and maintaining grid-connected solar and wind-solar hybrid power projects. Revenue is generated by selling these projects to CPP customers based on their exclusive use requirements. This dual-sector approach ensures multiple revenue streams for our KPIs, contributing to our strong position in the renewable energy sector.

Comparing the first half of FY22-23 with the first half of FY23-24, KPI Green Energy Limited recorded a significant increase in its consolidated Captive Power Producer (CPP) revenue, registering a remarkable 35% increase from ₹245.54 Crores to ₹330.87 Crores. At the same time, the Independent Power Producers (IPPs) segment experienced a remarkable growth, soaring by 99% from ₹36.47Crs to ₹72.38Crs.

Let’s take a look at the factors driving the company’s growth.

The company’s main growth drivers

Increasing growth in India’s renewable energy sector

The growth of India’s renewable energy sector has accelerated due to cheaper financing and expected decline in solar wind module costs.

Domestic solar power prices. Additionally, ₹35,000 crore has been allocated for green energy transition in the Union Budget to boost the country’s renewable energy sector.

Increasing order book of KPIs

KPI Green Energy Limited has achieved a significant milestone with its single largest order for 145.20 MW of Hybrid Captive Power Producers (CPP) and successful bid for 240 MW DC from GUVNL in the Independent Power Producer (IPP) segment. These achievements bring the company’s total orders to over 541 MW, in line with its ambitious goal of reaching 1000 MW by 2025.

Hybrid model launched for cost efficiency

KPIs that embrace hybrid models of solar and wind energy improve grid stability and provide a reliable, efficient and sustainable approach to renewable energy generation. Expanding capacity to 346 MW at the new location, KPI is committed to further improving the efficiency and cost-effectiveness of its hybrid model.

Financial Recognition: ICRA Credit Rating Upgrade

Credit rating agency ICRA upgraded KPI’s credit rating from BBB+ to A- (stable), confirming the company’s financial strength and reliability in the renewable energy sector.

Efficient cost management

KPI leverages KP Buildcon Private Limited to streamline Engineering Procurement and Construction (EPC) operations. KPI utilizes products such as Modular Mounting Structure (MMS) and steel structures for 66KV switchyards to reduce costs, maintain high quality and accelerate the construction of new solar power plants.

With this, let’s take a quick look at the company’s financials.

financial practice

The company reported net revenue of ₹643.79 crores in FY23, a 79.98% increase over the previous year’s revenue of ₹229.94 crores.

Net profit after tax increased by 53.48% from ₹43.25 in FY22 to ₹109.63 Crore in FY23.

The company’s ROE increased by 51.10% from 28.13% in FY22 to 42.51% in FY23. This was primarily due to higher revenue from the CPP business and subsequent increase in earnings in FY23.

The company’s ROCE also increased significantly from 22.91% in FY22 to 29.69% in FY23 to 29.71% in FY23.

The company’s debt-to-equity ratio is 1.96, an increase of 24.63% compared to 1.57 in FY22.

KPI Green Energy – Future Plans

The company aims to reach 1 GW of capacity by 2025, reflecting its commitment to substantial growth in the renewable energy sector.

Granular growth goals

The company has set specific targets for the Captive Power Producer (CPP) and Independent Power Producer (IPP) segments. By 2025, we aim to achieve a cumulative portfolio of 750 MW for CPPs and 250 MW for IPPs.

Aggressive expansion into wind-solar hybrid systems

In line with its commitment to sustainability, KPI plans to actively strengthen its position in the field of Wind-Solar Hybrid systems. This move signals the company’s commitment to finding innovative and efficient ways to utilize renewable energy.

Adoption of waterless robot cleaning and advanced solar technology

KPIs emphasize environmental responsibility by switching from manual water-based panel cleaning to water-free robotic cleaning. These changes not only contribute to water conservation, but also improve the efficiency of solar panel maintenance.

Digital transformation and central monitoring system (CMS)

To streamline operations, KPIs aim to improve the use of digital technologies. The establishment of a central monitoring system (CMS) at the headquarters will soon be promoted. The system allows companies to monitor, optimize and control all projects and assets regardless of geography and location.

Participation in government tenders

As part of its growth strategy, KPI is preparing to participate in government tenders for renewable tenders. This expansion into government projects is consistent with the company’s goal to contribute to the larger national agenda for sustainable energy development.

conclusion

In India’s dynamic renewable energy sector, KPI Green Energy Limited stands out as a standout company with impressive growth and strategic foresight. Operating as Independent Power Producers (IPPs) and Captive Power Producers (CPPs), KPIs ensure multiple revenue streams while emphasizing innovation, sustainability and strong financial performance.

The company’s order book, combined with its credit rating recognition and ambitious expansion plans, reinforces KPI’s commitment to leading the renewable energy sector. KPI has firmly established itself as an industry pioneer through major achievements such as securing the largest number of orders for hybrid power producers and successful bidding in the independent power producer sector.

We hope this exploration of KPI Green Energy Limited has been insightful. If you liked this article and would like to see more content on India’s renewable energy landscape, please share your thoughts in the comments section below!

Written by Akshita Malu

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