Premier Energies Reports Strong Q4 Margins Despite Weak Revenue
Premier Energies Ltd., India’s second-largest integrated solar cell and solar module manufacturer, reported strong Q4FY25 earnings. While revenue was slightly below estimates, operating and net profits exceeded expectations.
Q4FY25 Performance (Consolidated, QoQ):
- Revenue: Down 5% to Rs 1621 crore versus Rs 1,713 crore.
- EBITDA: Up 3% to Rs 529 crore versus Rs 514 crore.
- EBITDA Margin: 32.6% versus 30%.
- Net Profit: Up 9% to Rs 278 crore versus Rs 255 crore.
- Order Wins: Increased by 40%, totaling Rs 3,100 crore.
The lower revenue growth is attributed to potentially weak execution, while higher EBITDA margins resulted from reduced raw material costs. The net profit benefited from strong operating margin performance, higher other income, and a lower tax rate. Premier Energies secured 764 MW worth of orders in Q4, primarily in the module market. Exports accounted for 6% of revenue, up from 3% in Q3FY25, but only 3% for the entire FY25, a decrease from 14% in FY24, due to the lucrative Indian market.
Key Announcements:
- Capacity Expansion: Plans to expand cell and module plants by 0.8 GW and 1.6 GW respectively, with a capex of Rs 475 crore funded through internal accruals.
- BESS Solutions: Aims to establish 12GWh BESS cell-to-pack and container solutions by FY28 and a 3GW capacity by the end of FY2026.
- Joint Ventures: Entered a JV with Nuevosol Energy Pvt. Ltd to set up a 36,000 MT aluminum frame manufacturing plant, expected to be commissioned by FY27, with Premier holding the majority stake.
- Wafer Plant: Signed a 74:26 JV with Sino-American Silicon Products Inc. (SAS) of Taiwan to establish a wafer plant, expected to be commissioned by June 2026.
Points to Watch in the Conference Call (May 19, 2025):
- Details on the total investment required and timelines for expansion plans.
- Status and timeline of the upcoming 4GW integrated cell facility.
- Potential impact of increased competition in the solar cell market.
- Clarity on IRA policy changes in the US and their resolution timeline.
- Details on US expansion plans.
- Benefits from anti-dumping and countervailing duties on Southeast Asian countries.
Following the US tariffs on Southeast Asia solar imports, Premier Energies and Waaree Energies shares rose nearly 8%.
