Waaree Renewable Tech Nov-24

<p>It will change the EBITDA margin mix (B)</p> Signup and view all the answers

<p>It is primarily driven by volume increase (A)</p> Signup and view all the answers

<p>The percentage of outsourcing needs clarification (D)</p> Signup and view all the answers

<p>9 to 12 months (B)</p> Signup and view all the answers

<p>PAT and EBITDA (A)</p> Signup and view all the answers

<p>No significant slowdown in investments (A)</p> Signup and view all the answers

<p>Requirement to qualify for bids (C)</p> Signup and view all the answers

<p>Improvement in efficiencies and productivity (B)</p> Signup and view all the answers

<p>Rs. 3 crores to Rs. 3.5 crores per megawatt (C)</p> Signup and view all the answers

<p>Predominantly utility-scale projects (C)</p> Signup and view all the answers

<p>Complexity of battery storage (C)</p> Signup and view all the answers

<p>They are part of the order book (D)</p> Signup and view all the answers

<p>It keeps the industry on good footing (C)</p> Signup and view all the answers

<p>100% (D)</p> Signup and view all the answers

<p>Capacity to meet demands (A)</p> Signup and view all the answers

<p>Middle East and Africa (D)</p> Signup and view all the answers

<p>70% - 74% (A)</p> Signup and view all the answers

<p>No, there is no firm commitment yet. (C)</p> Signup and view all the answers

<p>Modules now get covered under ALMM (B)</p> Signup and view all the answers

<p>Historically procured only from domestic sources (C)</p> Signup and view all the answers

<p>No significant supply chain issues were mentioned. (B)</p> Signup and view all the answers

<p>40 to 50 gigawatts per annum (A)</p> Signup and view all the answers

<p>1.5 to 2 gigawatts (C)</p> Signup and view all the answers

<p>1.7 gigawatts (A)</p> Signup and view all the answers

<p>17.8 gigawatts (D)</p> Signup and view all the answers

<p>6 to 8 months (C)</p> Signup and view all the answers

<p>More than double the current pipeline (D)</p> Signup and view all the answers

<p>Kusum Yojana and rooftop projects (B)</p> Signup and view all the answers

<p>2.3 to 2.4 gigawatts (B)</p> Signup and view all the answers

<p>15% (D)</p> Signup and view all the answers

<p>The company has group capabilities in hydrogen. (B)</p> Signup and view all the answers

<p>Around 20% with variability (C)</p> Signup and view all the answers

<p>To only select projects that align with their historical operating principles. (D)</p> Signup and view all the answers

<p>Significant demand increase for hydrogen-related orders. (D)</p> Signup and view all the answers

<p>Margins have varied depending on the type of project undertaken. (D)</p> Signup and view all the answers

<p>Margins will be updated as new orders are won. (B)</p> Signup and view all the answers

<p>A significant demand yet to be scaled up. (D)</p> Signup and view all the answers

<p>30 to 45 days (A)</p> Signup and view all the answers

<p>Percentage of completion method (B)</p> Signup and view all the answers

<p>Profitable contracts (A)</p> Signup and view all the answers

<p>2x to 3x growth (A)</p> Signup and view all the answers

<p>Engineering, Procurement, and Construction (C)</p> Signup and view all the answers

<p>Revenue has increased (C)</p> Signup and view all the answers

<p>Unfavorable bidding results (A)</p> Signup and view all the answers

<p>It is transparent and ongoing (A)</p> Signup and view all the answers

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin is a profitability metric that indicates a company's operational efficiency. It measures the company's profit before accounting for interest, taxes, depreciation, and amortization.

EBITDA margin fluctuates based on the company's revenue and expenses. It is influenced by factors like cost of goods sold, operating expenses, and the company's ability to manage resources effectively.

The company aims to maintain a sustainable EBITDA margin of around 15%. This indicates a healthy financial position and profitability.

The company utilizes a business model that leverages a platform approach, reducing capital requirements and allowing for consistent increases in EBITDA and profit after tax (PAT).

The current order book provides a clear picture of expected EBITDA margins for the next 9 to 12 months. However, future orders may have different compositions, potentially impacting margins.

EPC costs refer to the expenses associated with engineering, procurement, and construction. These are typically involved in large projects like solar panel installations.

The company outsources a portion of its EPC costs. This means it purchases materials and services from external suppliers, rather than manufacturing everything in-house.

The company's outsourcing strategy for EPC components involves a mix of in-house production of solar panels and cells and procurement of materials from external sources.

The government has committed to significantly increase the purchase of renewable energy, aiming for 40 to 50 gigawatts of power annually.

This refers to a large potential amount of future business, indicating a strong demand for the company's products or services.

The company expects a delay between winning an order and actually generating revenue from it, typically taking 6-8 months.

This refers to the amount of work the company has already been awarded, which ensures future income.

The company aims to secure new orders that will drive revenue and growth in the near future.

The company is aiming to capture a significant portion of the growing renewable energy market.

The company is focused on converting its existing potential customers into actual buyers.

The company is actively seeking more business opportunities in the growing renewable energy market.

New companies entering the market bring competition which pushes companies to improve efficiency and productivity. These companies however need to meet certain qualification criteria when bidding for projects which often hinders their ability to compete.

The company focuses heavily on large-scale projects, requiring significant upfront investment from clients, typically around Rs. 3-3.5 crores per megawatt.

The company is witnessing an increase in demand for rooftop solar, with these projects now being included in the order book.

The company's recent projects are increasingly complex and require battery storage, which is essential for reliable and uninterrupted power supply.

The company's business model focuses primarily on selling to utility companies, meaning they're responsible for supplying electricity to multiple customers.

While there is competition from new companies, the company doesn't express significant concern due to the unique challenges facing new players like qualification requirements and the complexity of large-scale projects.

The company is working on projects involving both conventional solar power generation and battery storage, forming hybrid projects designed to offer reliable power even during peak demand periods.

The company faces stiff competition from newer players, especially in the large-scale projects sector. However, its significant experience, project size, and the complexity of these projects give it an advantage over competitors.

The balance-of-system (BOS) refers to all components of a solar project except for the solar panels themselves. This includes inverters, racking, wiring, foundations, and other critical equipment.

The company prioritizes profitability in the BOS segment, as it generally offers a higher profit margin. However, they strategically blend this with other aspects of the business for a balanced approach.

EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, serves as a measure of a company's operational profitability before considering financing and non-cash expenses.

The company's focus extends beyond simple profitability, with tracking and management of earnings up to the EBITDA level as a key element of their financial strategy.

The company has aspirations for international expansion into regions like the Middle East and Africa. However, they haven't committed significant capital yet, but are open to opportunities.

The company's domestic supply chain is well-equipped to meet the demand for materials, and they have not faced any significant sourcing issues. This includes both solar panels and other equipment.

ALMM, or the Approved List of Models and Manufacturers, is a government initiative aimed at promoting domestic manufacturing in the solar industry. It requires solar modules to be sourced from specific manufacturers.

The company has not experienced any major issues in sourcing materials for projects. They successfully manage both panel procurement under ALMM and other equipment sourcing domestically.

The practice of booking revenue based on the percentage of work completed, rather than only when payment is received.

The amount of potential business, or unwon orders, that a company has identified.

The period between when a company invoices a client for work and when that revenue is actually recognized and added to the company's financial statements.

The process of designing, procuring materials, and constructing a project, especially for large infrastructure projects.

A practice where a company focuses on securing profitable contracts rather than taking on every project regardless of its financial feasibility.

The amount of work a company has already been awarded and is expected to generate revenue from in the future.

A metric that reflects a company's operational performance; it measures profit before considering certain financial expenses.

When a company focuses on converting potential customers into paying clients.

The company is confident that it will maintain a high profitability level, specifically targeting a double-digit EBITDA margin going forward.

The company aims to secure new orders, which will ultimately drive revenue growth and increase its order book.

The company is actively looking for opportunities in the green hydrogen sector, but currently, there are no significant orders from this market.

The company expects the time between winning a new order and actually generating revenue from it to be 6-8 months.

The company has a strategy of proactively choosing projects to ensure they maintain a high profit margin, even if it means taking on fewer projects.

The company's current order book reflects a good understanding of expected margins for the next 9-12 months, but future orders may have different margin profiles.

The company's profitability has been historically around 20%, but they anticipate a more sustainable margin of around 15% in the future.