Seems like bad news for Indian solar companies
@HG_6470, I expect around 25 cr. as PAT for FY16. This assumes that about 3/4th of the current order book would be executed. The lack of complete confidence comes from uncertainty over how much of order book would carry forward to next FY.
@Marathondreams, Its surprising how US manages TIPP on the one hand, promote local employment via discriminatory visa policies on the other hand, and yet win such cases. They don’t stand much chances against Chinese manufacturers in open markets anyhow. Unless the govt. comes up with some legal mechanism to circumvent this or China/India use their financial/political clout, it could spell bad news (in the short term) for local solar cell/panel manufacturers. However Ujaas does not manufacture any panels on its own, so irrespective of such cases, it can source its panels from the best supplier considering quality and price.
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Bagged another 5 MW order for 34.73 cr from Rashtriya Ispat Nigam Ltd. @ Vishakhapatnam.
In the FY15 annual report the company had mentioned formation of 3 foreign subsidiaries (Hong Kong, Uganda and Dubai). Does anyone have any update on the progress in these subsidiaries this year?
1.52 lac solar RECs were traded today. This is the highest number per month so far. This is just less than the 1.87 lac solar RECs issued in this month, and small in comparison to an unsold inventory of 33 lac solar RECs. Quite some way to go, but this is nice progress.[quote=“chintans, post:62, topic:1467”]
90,236 solar RECs were traded today @ Rs. 3,500/ REC. This is the highest number of solar RECs traded in a month till now.
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SECI has floated a rooftop solar tender of 500 MW for which the bid opens on June 3, 2016. Pls see ET news link below
http://economictimes.indiatimes.com/industry/energy/power/seci-prompts-a-rooftop-solar-revolution-with-500mw-tender/articleshow/52018142.cms
The ball park cost for every MW is around Rs 5 - 6 Cr. Means the total tender value is between Rs 2500 - Rs 3000 Cr. Pretty huge for solar companies which are now at around a few hundred crores of sales. This is very positive for Ujaas which is a leader in roof top solar. And yesterday the gujarat govt had offered a Rs 10K subsidy for every 1KW rooftop built. TN parties have proposed subsidy if they win elections. All these point to a huge demand explosion of rooftop. Very positive for Ujaas. Would welcome other views on this news…
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Any news on the results for Ujaas Energy. Last year was 20th May i guess.
Disclosure tracking position
Results announced. Click here.
Q4 FY16 Revenue at Rs 167 Cr (v/s Q3FY16 Rs 45 Cr and v/s Q4FY15 Rs 50 Cr). This is the highest quarterly revenue since Q4 FY14.
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May be a dumb question. But why there is a huge spike in payable and receivables?
Anurag Mundra’s (joint MD & CFO) interview after Q4 FY16 results.
- FY16 revenue of Rs 277 Cr. Rough break up - Solution (parks) - 190 Cr, O&M 9.5 Cr, EPC 50 Cr
- Company entered the EPC business, which has lower margins but higher volumes
- This seems to be the last year for companies to get 100% depreciation benefit on solar projects. So Ujaas is expecting a lot more orders this year.
- Order book already of 35MW
- No plans to raise funds this year. The resolution passed in AGM is there for the last 3 years. Its there to enable the company to raise funds should there be a requirement to do so.
- Company is a minimum alternate tax (MAT) paying company. So taxes are a bit less. But in the P&L statement the company has to account for deferred tax liability, which is not an actual cash outgo. So net profit margins appear lesser than they should be. Anurag believes the company should be valued on EBITDA basis.
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Did the management talk about government subsidy to solar energy businesses?
No. What subsidy are you talking about?
I’m sorry I can’t find the source link right now; I got a notification on moneycontrol app on Friday that a subsidy is being discussed but until I can recover the link, I’ll not take ownership of this. I could be wrong. I’ll look for the link and update the thread.
Ujaas executed 5 MW less than I hoped in this quarter and hence PAT was 4 cr. less. The major disappointment was that NHPC order for 50 MW seems unlikely. Revenue / MW continues to decrease due to decline in equipment cost. It remains to be seen whether margin (in the turnkey solution business) remains at almost similar levels. Margins in EPC, where management is focussing due to lack of opportunities in turnkey business, are of course much lower.
The good thing is that O&M revenue keeps increasing with each project executed. We also know from 2014 that management has the bandwidth to scale up, at least for the next year or two.
With lacklustre FY 2015 being a one-off thing, and current order book of 35 MW, the testing times will hopefully be behind us in a quarter or two. I continue to hold full quantity and am keenly watching order book and progress on Ujaas Home.
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Receivables have increased from 64 cr. to 82 cr. which is fine as many more projects are under execution/ recently completed now (Q4 FY16) than at Q4 FY15 end.
The payables have increased from 34 cr. to 125 cr. as company is availing of 90-120 day credit line provided by Chinese suppliers of solar panels. The cash on the other hand has increased from 16 cr. to 68 cr. So this is not a worrying factor as of now. Importantly, the long term debt continues on a declining trend from 99 cr. to 89 cr.
Also, the management indicated in concall that they have no plans of equity dilution or setting up a solar panel manufacturing plant.
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Central govt departments are taking a pledge to produce 5,000 MW of rooftop solar from now till 2019 ( 3 yrs ) reports ET dated 5th June 16.
http://goo.gl/XHqqYv
At Rs 6 Cr per MW of capex, the potential business for roof top solar engg companies is a massive Rs 30,000 Cr over the next 3 years. Very positive for Ujaas as it is a leader in Roof top solar installations
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A slew of about 12 brokerage had made site visit to Ujaas on the 1st of July. The list includes marquee names such as Emkay, Axis capital, JM Financial etc. Growing interest on Ujaas from brokerage research houses. If they start buying, the stock will be a maket outperformer
Disc: Invested for about 7% of my portfolio
great signs. Good days ahead.
CARE assigns “highest capability” and “highest financial strength” rating to Ujaas. As a solar project executing partner. Very good sign. Will this lead to a re-rating
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