Vikram Solar ltd disclosed that the consolidated net profit increased by five times in the third quarter (Q3), which is 98 crore, as compared to 19 crore in the third quarter (Q3) last year. The increase was drastic because of the increase in sales of the modules, and the efficiency of operations and control of costs. The increasing demand of solar power solutions in the domestic and international markets is still favorable to the company.
Operational Performance and Revenue is improved.
In Q3, Vikram Solar registered a major growth in revenue owing to good order implementation and utilization of the capacity. The manufacturing plants of the solar modules by the company were functioning at a better efficiency level, which contributed to margin improvement. The management noted that there were also improved profitability due to consistent prices of raw materials and positive policy environment.
Board has officially approved 4371-Crore Capex Plan.
As part of a significant strategic decision, the company board passed a capital expenditure in the development of Battery Energy Storage Systems (BESS) of 4,371 crore. This investment will be implemented in a phased manner and is in accordance with the long term Indian clean energy and grid stability objectives. Vikram Solar plans to enter the energy storage market which is growing at a high pace and the capex plan will be the formal entry into the market.
Battery Energy storage systems are known as battery systems.
Approved capex will then be established with regards to building of advanced manufacturing plants to store energy solutions of battery energy, which will serve renewable integration, peak load control, and grid balancing. As India aims at massive renewable implementation, energy storage has come in as a decisive factor in the supply of continuous power. Vikram Solar will seek to become a major domestic player in this segment
Order Book and Market Outlook The market structure and organizations are based on the principles of market research Order Book and Market Outlook The market management and the market structure rely on market research concepts.
Vikram Solar has a strong order book, both utility-scale and export markets, as at Q3. The company anticipates that the trend would continue to accelerate over the next few quarters due to government incentives, increase in the number of solar installations, and the use of storage-supported renewable systems.
The strategic direction may be implemented through internal approaches or by entering the international market .The Strategic Direction and Management commentary can be achieved via internal means or by means of entry in international market.
According to the management, the good performance in the third quarter is indicative of the company being focused on scale, technology and diversification. Business cyclicality should be minimized by the battery energy storage expansion, and new sources of revenue will be opened, which should support the long-term growth trend of Vikram Solar.
