Hi Ujwal, they are paying deferred tax , current tax is nil. Kindly read results from company document. Because it was loss making company earlier, they can carry forward loss to reduce tax.
30f1dd30-fa34-482b-8f13-fa1ff5a0c93a.pdf (2.1 MB)
Results
Great results by Websol. Few points from result notes:
EBITDA increased by 8% QoQ as company strengthened supply chain and process improvement to minimize consumption loss.
Net profit almost similar to Q2 despite accelerated provisions.( ~15cr in current quarter vs 8Cr in Q2)
Phase II expansion of 600MW Mono PERC bifacial cell line expected to do commercial production in July 2025. Investment of 220cr from internal accruals +debt.
Post Phase II total capacity will be 1.2GW of solar cells (+550MW of module capacity already commissioned)
Phase III expansion plan in progress either through JV or through subsidiary.
Entire production capacity for FY25 is booked. Company already received strong interest for phase II capacity. Orders will be finalized by end of FY25.
Secured solar modules orders of 116Cr including exports.
Discl: invested, added recently.
Websol, press release.
Seems next quarter should see some revenues booked from the 550 MW module line. Incremental revenue from phase 2 cell line should start reflecting from Q2 FY 26 .
Expansion Update:
Phase I: 600 MW Solar Cell & 550 MW Module Line commissioned.
Phase II: 600 MW Cell Line installation, commercial start in July 2025.
Phase III: Greenfield project groundwork underway.
Is there a reason why websol hit lower circuit today?
Numbers were flat qoq , was expectation of 50cr+ pat this qtr , rest things are within timeline
If fy25 pat closes near 150 given current runrate , PE comes at 44 which makes it faily valued .
But based on FY26 nos , PE comes in range of 25-28
Overall, results appear moderate in the short term but remain undervalued on a forward one-year basis.
Change in depreciation policy was a surprise, though not new given both waaree and premier also do the same to fairly value the assets. There is 9% increase QoQ in cash PAT if you add back depreciation. Decent set i feel.
Disc - Invested
Hi Everyone,
Iām new to investing and recently entered Websol Energy at ā¹1,450. Iām planning to hold for 2-3 years but wondering if I should add more now or wait for a correction. Would love your thoughts!
Hereās what Iāve gathered:
- The companyās Q3 FY2025 results look solid (Revenue: ā¹147.31 Cr, Net Profit: ā¹41.56 Cr), and theyāre expanding capacity to 1.2GW by July 2025.
- But the stockās up 253% YoY and trades at a high P/E of ~138x. Is this too expensive, or does the growth justify it?
- Debt is a concern (ā¹159 crore net cash negative), and interest costs have shot up 173% YoY.
Also, price targets seem mixedāsome suggest ā¹1,917āā¹2,032 for 2025, while others predict volatility. The stockās above its 200D MA but below the 50D MA, so Iām not sure if this is a good entry point.
What do you think? Should I average down now or wait for a dip? And for long-term holders, how critical are government policies and global solar demand for Websolās growth?
Thanks in advance for your help!
Iāll share my two cents on this.
- The company has become a very safe bet because of its execution
- because of the boom in the sector the stock has been rallying like anything in the past few years ( Once the same situation comes back this will become multibagger)
- With more expansion in its capacity and orders already taken care of profit will increase.
- Safe profits in the coming years in the range of 2-300 cr, with a P/e of 40 makes Market cap as 8000cr
- so yes overall its a conservative bet not an aggressive bet anymore so Iād advise against adding more unless you see a drawdoen of more than 15-20%
Disc. Exited and looking for a good entry point at lower levels