PM Renewable Energy Vs Green Energy Stainless Steel
Renewable vs. Green Energy Stainless Steel: India is currently experiencing a revolution in the energy sector. Countries that have traditionally relied heavily on coal are now transitioning to becoming greener and cleaner.
The companies we will look at are at the forefront of this market. Each company is slightly different, with one company manufacturing the energy generating devices and the other operating and maintaining these renewable devices.
In this article, we will look at when the two companies were founded and what products they currently produce. We will perform a thorough fundamental analysis of their finances. We will then decide which stocks are best suited for India’s energy boom.
PM Renewable Energy and Stainless Steel Green Energy – Company Overview
afternoon renewable energy
afternoon renewable energy Waaree Renewables has India’s largest total installed capacity of 12 GW as of June 30, 2023. The company has plants in Chikhli, Surat, Tumb and Nandigram in Gujarat. We are the No. 1 solar module exporter in 2023.
Note: If you want to learn candlestick and chart trading from scratch, here are some of the best books available on Amazon! Get the book now!
As of June 30, 2023, the total number of customers served by Waaree is 407 in India and 20 outside India. The company has supplied more than 6 GW of solar modules and commissioned more than 1.1 GW of solar EPC projects.
The company boasts of a wide customer base having served companies such as Reliance Industries, Bharat Petroleum, Aditya Birla Group, Adani, Jindal Steel and Power and many more industries. The company enters into engineering procurement and construction contracts, power sales contracts, and solar power plant operation and maintenance contracts.
Waaree Renewables provides comprehensive rooftop solar solutions. The company has developed expertise in converting unused roof space into an efficient energy source to suit customer needs. Along with rooftop solar panels, Waaree also installs floating solar solutions that float on lakes, ponds and reservoirs for solar panel installations.
Innox Green Energy
Inox Green Energy Services Inox Wind Infrastructure Services Limited was incorporated on 11 May 2012. The company is a subsidiary of Inox Wind Limited and part of the INOXGFL group, which operates primarily in the specialty chemicals and renewable energy sectors.
Its parent company, INOXGFL Group, is one of India’s largest business conglomerates with a 90-year history. The company has built a multibillion-dollar business with a diverse portfolio that includes refrigerants, fluoropolymers, specialty chemicals, wind energy, and renewable energy.
Inox Green Energy is a fully integrated wind energy operations and maintenance company. With an operating portfolio of 3.14 GW, the company’s expertise lies in providing long-term O&M services for wind farms and wind turbine generators. The O&M contracts undertaken by the company are long-term contracts ranging from 5 to 20 years, and the current average remaining contract period is more than 6 years.
PM Renewable Energy and Stainless Steel Green Energy – Industry Overview
India is committed to achieving 50% of its cumulative installed electricity capacity from non-fossil fuel sources by 2030. India had an installed capacity of 167.75 GW of renewable energy by the end of FY23, with a further 78.75 GW under implementation and 32.60 GW in the pipeline. Various bidding stages.
India ranks fourth globally in installed renewable energy capacity, wind power capacity, and solar power capacity. India’s renewable energy sector has attracted significant attention. foreign direct investment (FDI) amounted to $12.57 billion from April 2000 to June 2022.
The country aims to reach 500 GW of non-fossil energy capacity by 2030, and there are significant investment opportunities in the renewable energy sector. Electricity demand is also expected to increase due to population growth (expected to be 1.51 billion in 2030) and urbanization.
India’s transition to a sustainable future includes ambitious targets to reduce carbon intensity by more than 45% by 2030, achieve 50% renewable energy share of electricity capacity by 2030, and target net-zero carbon emissions by 2070. It’s possible.
Despite fossil fuels currently accounting for 59% of installed energy capacity, this share is expected to decline significantly to 31.6% of the energy mix by 2030, driven by India’s unwavering commitment to a greener energy future.
The Union Budget for FY24 had a total allocation of Rs. 10,222 Cr. This is a 48% increase compared to the original budget of 50 billion won. 7,033Cr.
In the FY24 budget, the central government has allocated Rs. Provides 3,500 Cr to provide feasibility gap funding for a battery storage project with a capacity of 4,000 MWh. The government has also issued guidelines to encourage the development of pumped storage projects.
Also read…
PM Renewable Energy and Stainless Steel Green Energy – Finance
To compare the financial performance of the two companies, let us look at their standalone performance from FY20 to FY23. This was done because Inox Green Energy was a recent public company with limited finance available in the public domain.
Sales and Net Profit
Waaree Renewables reported revenue of Rs. 342 Cr in FY23, up 457% from Rs. 154Cr in FY22. This superficial growth has been maintained over the past four years as the company scales up from Rs. 7.6 Cr in FY21 is a whopping Rs. 154 Cr in FY22, a whopping 1921% growth in one year.
Inox Green, on the other hand, is seeing much more normalized revenue growth. Inox Green Energy’s revenue increased from Rs. 174 Cr in FY22 to Rs. 248Cr in FY23, growing by 42%. However, the company’s growth has been very slow over the past few years, with it performing well only in FY23. This brings our growth rate to 14.5% CAGR since FY19.
Along with the massive revenue expansion, Waaree’s margins also expanded slightly, resulting in a 191% increase in net profit at Rs. 20 Cr in FY22 to Rs. 59 Cr in FY23. The company has been profitable since FY21 and its net profit has grown at a CAGR of 404% since then.
On the other hand, Inox Green was profitable in FY23 with a net profit of Rs. 25.13Cr. The company suffered large losses in FY21 due to high operating costs incurred in maintaining its facilities. Nonetheless, steadily rising losses have been reduced to record lows as the company improves operating efficiencies and secures profitability over the next few years.
profit
Inox Green Energy’s operating profit margin was the highest of the two companies in FY23. Waaree Renewables reported an operating margin of 23.4% compared to Inox Green, which had a 25.56% higher margin. Over the past four years, operating margins for both Inoxes have remained high, averaging 46%.
But when we come down to net profit margin, the whole scenario changes. Waaree Renewable, which has remained profitable for the past three years, maintained a net profit margin of 17% in FY23. On the other hand, Inox Green is not yet profitable. Net profit margin for FY23 was -8.64%.
rate of return
Waaree Renewable’s return on equity hit an all-time high of 72.61%, driven by the company’s huge profits. This high ROE will likely normalize as the company continues to keep profits within the company. The same goes for Waaree Renewables’ return on equity, which is 98.61%.
The ROE of Innox Grimm, which has not yet turned a profit, was calculated to be -1.88%. What’s interesting is that this ROE has increased only modestly from -66.97% in FY21. The company’s ROCE remains positive at just 1% in FY23.
debt analysis
Waaree Renwables’ debt to equity reached an all-time high of 1.78x in FY20. This debt to Equity has been steadily decreasing, and finally in FY23, Waaree became a debt-free company. The same is true for Inox Green Energy. Debt-to-equity declined significantly from a high of 18.8x in FY20 to a low of 0.51x.
However, in terms of interest coverage ratio, Waaree currently has an ICR of 68.64x due to its fully liquidated balance sheet and higher earnings. However, Inox Green’s ICR is only 0.64x. This is because you still have a significant amount of debt with income that is much lower than you need to pay the annual interest payments.
PM Renewable Energy and Stainless Steel Green Energy – Key Indicators
We now understand both companies’ businesses and have a good comparison of their financial positions. Now let’s look at some key indicators.
PM Renewable Energy and Stainless Steel Green Energy – What’s Next?
Future Plans – Waaree Renewable Technologies
- The company will be evaluating opportunities in both international and domestic markets to secure more EPC contracts.
- Waaree plans to participate in more government and private tender processes.
- The company will secure third-party O&M opportunities in both organic and inorganic methods.
- Waaree is currently in the process of establishing a 1MW green hydrogen power plant.
- The company will also work with the hydrogen value chain to establish an electrolyzer gigafactory.
Future Plans – INOX Green
- From FY24 to FY26, Inox Green Energy is expected to grow its WTG supply exponentially, targeting to add at least 500 MW to its portfolio annually.
- The company plans to grow further through future acquisitions.
- O&M’s unique asset-light model is IWL. Evita Margin over 50%.
Read more: 3 candlestick pattern with the outside up
conclusion
Waaree Renewables has demonstrated impressive sales growth and profitability, driven by strong solar module exports and rooftop solar solutions. The company is debt-free with impressive margins and returns. Future plans include expanding EPC contracts, government tenders, and exploring green hydrogen opportunities.
On the other hand, Inox Green Energy, an integrated wind energy O&M company, saw sales growth slow but operational efficiency improved. Although it was profitable in FY23, it lagged behind Waaree on profitability metrics. Inox aims to increase wind turbine supply, pursue acquisitions and maintain high EBITDA margins through an asset-light model.
Both companies operate in India’s promising renewable energy sector. However, Waaree Renewables now has a stronger financial position and growth trajectory, while Inox Green Energy is focused on improving performance and expanding operations.
Written by Nasir Hussein
By leveraging the Stock Screener, Stock Heatmap, Portfolio Backtesting and Stock Comparison tools on the Trade Brains portal, investors have access to comprehensive tools to identify the best stocks, stay updated and informed with stock market news. invest.
Start your stock market journey now!
Want to learn stock market trading and investing? Check out exclusive stock market courses from FinGrad, a learning initiative from Trade Brains. You can sign up for free courses and webinars from FinGrad and start your trading career today. Sign up now!!
