Too hot, too cold or rain almost covers all of indian seasons. As a user of cab for to and fro from office, I would definitely opt for this over autos for multiple reasons, but then that also depends on operator. Blusmart has been doing good as far as I have heard in terms of customer satisfaction.
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As much as Iām intrested in this stock.
Pledging makes it that much uncomfortable.
And we have seen in past if pledged shares are offloaded in market , what a havoc , that can create.
Market cap halves in just a few sessions.
Thatās the biggest risk , Iām unable to come to terms with, in this stock.
4 Likes
Pledge is related to LAS (loan against shares). Promoters have pledged there shares to take loan. This is mainly because promoters are first generation of ambitious enterpreneur. So, whenever they need capital, debt is generally an option and for that they had pledged their shares.
Now whenever share price drops, they are required to make more pledge to maintain LTV. Thatās why they are increasing pledge with drop in prices of gensol.
Unless they shipped out funds from company and tried to show wrong results, there is no harm with pledging.
I had noticed promoters are more keen to keep prices up to save their pledge.
4 Likes
That is still very risky ā¦ it can result in a feedback loop and keeps the promoters on a knives edge which could make them act irrationally. Not related to Gensol though ā¦ I believe they are on the right track and hoping they can scale up their EV manufacturing. Solar business is anyway being a great cash generating business
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6d79a872-8009-4c49-980d-a4f891e52fe8.pdf (430.3 KB)
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Gensol | EPC Contract
Gensol Engineering Ltd. secures order worth approximately INR 967.98 crores
(including GST) for 245 MW Solar PV Project at Khavda RE Power Park, Rann of Kutch
in Gujarat, including three years of O&M
2 Likes
Well if and even they do get debt free, thatāll triple the bottomline and take the ROCE to above 50%. 6 months is a stretch, Iāll be happy if it happens in 18 months as well. The timing is less important than the fact that this seems to be a priority going forward. Letās see if we see further debt reduction in Q3
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Extremely disappointed On Q3 results.
630af614-0019-4c79-9d27-a60c73684fd5.pdf (4.1 MB)
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Seems like there will further PE derating for the stock.
Management not walking the talk.
Doesnāt look like 2k top line will happen.
3 Likes
They usually do 2x + sales of Q3 in Q4. Even if they achieve that in FY25, total revenue will be ~1800cr. Should definitely question the management in concall, they have a history of over promising and under achieving.
3 Likes
I donāt see the balance sheet on the results document. Has the debt number been mentioned anywhere? I do see that the finance costs have dropped significantly from Q2. If the debt reduction is as aggressive as Mr Jaggi says it will be, the return ratios can expand significantly in Q4 and Q1.
While the revenues havent expanded as expected, Iām more worried about the sharp rise in cost of materials consumed. It can only br explained with a sharp rise in inventory, but where is the balance sheet?
5 Likes
B/s are not published in q3 is my sense, q2 and q4 it is
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The solar EPC operating profit margins have dipped to ~6% in Q3 FY25 from 17-18% in Q3FY24/9m FY24. This seems to be a major cause of concern to me.
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If the tax in booked in p&l statement then it should directly outflow from cash flow statement because depreciation come before taxation
Please help me to understand the thesis of this statement made by CMD of gensol
Disc- invested decent size of portfolio
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Under Ind-AS, the tax amount shown in the Profit and Loss (P&L) statement does not necessarily have to match the tax outflow mentioned in the Cash Flow Statement.
The P&L statement reflects the accounting profit or loss for the period and includes provisions for income taxes based on accounting principles. On the other hand, the Cash Flow Statement shows actual cash inflows and outflows, including actual tax payments made during the period.
Therefore, differences can arise due to timing differences, tax provisions, and adjustments for non-cash items
Disc: No position
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I donāt think so, margin is 20 percent and only solar epc is profitable so margin is 20 percent right?
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Worst confrence call I ever attended.
The excuses made by CMD about guidance is clearly undigestable.
- solar EPC order book was 1700+ Cr A year ago and all these projects timeline was between 9-12 months and itās been 12 months ( as of 30 dec 2024) gensol Eng has achieved only 750 odd crore of revenue so should we assume that gensol eng. failed to execute these projects in project completion timeline.
Note- that 1700 Cr order book was a year ago + in the first 2 quarters of FY25 Gensol engg won some more orders so practically some percentage of revenue should also come from these orders as well.
Source- https://www.youtube.com/live/66qQ-GlO6QY?si=AKnpf-IxbsoUp8eT ( video publishing date is (dec 28 2023) - All other solar EPC`s are doing great work only gensol employees are scared of rain
- From Jan 2024 they are trying to do QIP but itās pending ( no wonder why)
- They will need capex for BESS projects ( 2700 odd crore + they will need working capital for solar EPC 10-11 thousand crore order book + they will need capex for ev manufacturing+ they will need cash for debt repayment So how we(gensol investors) can digest that a company with 2K Cr Market cap with 1200 crore debt can rise that much capital requirement through debt and equity
Disc- exited all my positions(40% loss) except one share Because that will keep making me realize my mistake.
13 Likes
Look at the segment results in the filing, solar EPC operating margin has reduced considerably as per the data below.
Discl. - invested
| Rev | Operating profit | Margin | |
|---|---|---|---|
| Q3 fy25 | 255.85 | 15.39 | 6.0% |
| Q3 fy24 | 189.4 | 35.6 | 18.8% |
| Q2 fy25 | 262.44 | 35.2 | 13.4% |
| 9m fy25 | 672 | 88.67 | 13.2% |
| 9m fy24 | 478.9 | 82.33 | 17.2% |
1 Like
Some insights, including reason for drop in margin of Solar EPC
1 Like