Results tomorrow…
Initiated Tracking Position…
1st August interview
Reema: So, how does this change financials for you? Will you be availing of the World Bank loan, and if yes, to what extent? All these make good headlines, but tell us for the company’s financials how does it change?
A: Yes, some of these loans are soft loans and come with a concessional rate. Like USD 625 million loan of World Bank is coming through State Bank of India (SBI). So, they do not provide loan directly to any company, they provide through one particular agency. So, for USD 625 million they have selected SBI. Similarly 1 billion euro loan by KFW Germany is coming through Indian Renewable Energy Development Agency (IREDA).
Ujaas work in an asset light model. So, we do not borrow, we do not put projects on our balance sheet. But our customers who put up those projects they have been benefitted by this type of favourable terms. So, more solar projects will come in. So, Ujaas will be able to deliver more projects to our client at better terms and conditions.
One more thing I wish to highlight, yesterday an agreement is signed between International Solar Alliance (ISA) where India is the leader those 121 countries which falls between Tropic of Capricorn to Tropic of Cancer are part of ISA and World Bank has committed that they will find out investment opportunity of more than USD 1 trillion by 2030. Now it is one of the very significant statement to say that okay, we are looking for this.
As a company many times we pursue projects in other countries. However some of our competitors probably in the western worlds come with a better financial proposal. So, Indian companies take a beating on that front, but when this type of statements are coming it means that the government wants to take a leadership position, India wants to be a leader, not only in Asia but the complete ISA.
Disclosure: Invested and views may be biased
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Solar energy solution provider Ujaas Energy today posted five-fold jump in standalone net profit at Rs 7.25 crore for the quarter ended June 30, 2016.
The company had posted a standalone net profit of Rs 1.42 crore the quarter ended on June 30, 2015, the company said in BSE filing.
Total income from operations also increased to Rs Rs 93.70 crore in the quarter as against Rs 11.77 crore in the first quarter of last fiscal.
Income from manufacturing and sale of solar power systems increased Rs 86.82 crore compared to Rs 5.36 crore during the same period a year-ago.
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Ujaas energy commissioned 25MW spread across 3 EPC projects
Of these, 9 MW Oil India project had been commissioned earlier.
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V Good Q2 results by Ujaas. Wondering why this stock is not moving to 52 week highs inspite of the companu postinf stellar results in this FY
Thanks for the results link.
Could some one throw light on why the tax paid, is lesser than the previous quarter, even though the profits are higher.
The Jt MD of Ujaas giving an upbeat commentory about the solar sector and the prospects for Ujaas
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great write-up chintan
you have compelled us to look at renewables - i dont have holding in Ujaas, but now i will track this more closely
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@chintans @aseem @manishinlucknow dont have complete clarity about the economics of solar plant. Say Ujjas has 14 MW solar capacity on its own balance sheet. It generated approx 40436 units(1,21,602 - 81,166 units)* of REC for the year which means it generated 40436 MWH for the year which means it operated 7.91 hrs per day (40436/14/365).
Thus this solar plant has generated about 20.21 crores of revenue ( considering power cost 5 Rs/Unit * 40436*1000) by selling power. An additional 14 crores is value addition by way of REC monetisation (40436 * 3500) .
Even considering both the above revenue stream, can a solar plant can compete with conventional coal plant which operate 24 hours. Considering both the above revenue steam ,equivalent per day operating for solar plant comes to be only 11 hours.
- REC taken from inventory and i assume they have not sold any REC this year. (Confirm this assumption also)
R they getting REC for there own capacities or for some solar park capacities also.
Dis- (invested recently)
Ujaas wins a 1 MW order for its solar park business
Disc: forms 18% of my portfolio
I am an investor in Ujaas.
@chintans thanks for starting this thread on this company.
Some investment rationale of my investment are:
I believe solar energy in next 5 to 10 years will completely replace oil and other energy.
If not complete replacement the growth in energy capacity will be significantly tilted in favor of solar energy.
I was not able to find any other player who is significant and has large part of revenue coming from solar. Large players have insignificant solar vertical. Cell manufacturers have stiff competition from China. Hence contractors and roof top installers would be preferred investment if anyone wants to invest in this space.
I have not been able to scan complete listed space as of now however @chintans it would be great if you can share any other major listed firm in this space.
Specifically in case of ujaas as per their annual report they are targeting 5 GW out of ambitious 100 GW capacity govt is planning in solar by 2022. I wonder from where who will be other players filling this large gap.
Short term trigger is demonetization, due to which people will start using accelerated depreciation available to solar plants till FY17 to install dummy plants.
I was not able to ascertain whether company has any track record of such activity which is largely used by wind players.
Long term it remains to be seen post FY17 once the benefit if withdrawn how will the order flows gets impacted. I believe roof top solar and govt orders will continue to remain robust in that scenario as well.
Largely first hand research shows no red flags on promoters. I have not performed any scuttlebutt through any channel.
Disc - Investor in Ujaas, views can be biased to that extent
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Dolly Khanna had indicated bullishness on Surana Solar about a year back.
Porinju Veliyath had indicated bullishness on Swelect Energy Systems.
Discl.: Continue to hold full quantity in Ujaas ~ 60% of my portfolio.
@chintans Any guidance on recent order book / bid book. What do you think will be grwoth drivers in near future ?
park or EPC or IPP ?
@chintans Company hosted some institutional / well known individual investor recently to their site. Any research report after than?
60% of portfolio… isn’t too huge?
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Ujaas energy gets an LOI for order for 5 MW EPC solar project. This should be for approximatley a value of Rs 27 - 30 Cr. reasonably big for the company.
Ujaas energy’s latest presentation sent to BSE. Has a lot of useful information…
I THINK THIS IS GOOD NEWS FOR UJASS…