Kolkata-based solar cell and module manufacturer Websol Energy Systems has announced a significant improvement in performance during the third quarter (ending December 31, 2020) of the current financial year FY 2020-21. The company recorded a 21.3% increase in revenues and a 373.8% increase in EBITDA (earnings before interest, tax, depreciation, and amortization) over the preceding quarter.
The EBITDA figure for the third quarter stood at an attractive INR 60.28 crore. Profit before tax was INR 53.63 crore from operations in the third quarter compared to INR 5.86 crore in the second quarter.
“The improvement in performance was derived singularly from the manufacture and sales of solar cells,” stated the company, which has a capacity to manufacture 250 MW of solar cells and 250 MW of modules.
SL Agarwal, Managing Director, said, “The improved performance of the company during the third quarter is a reflection of the sharp turnaround in the ground realities of the renewable energy sector in India.” “This improvement has been driven by forward-looking government policy and has reflected in improved revenues and a substantial improvement in business quality.”
Agarwal said the company was able to moderate raw material costs as a percentage of revenues from 66% in the second quarter to 63.5% in the third quarter, strengthening overall margins and competitiveness.
“The company is sold out for its complete manufacture of solar cells for the next six months,” said Agarwal. “In view of this reality, the company is restructuring its existing 250 MW solar cell capacity towards higher cell sizes and is evaluating to set up another 300 MW solar cell capacity to be commercialized over the next 12 months.”
The company is attractively placed to capitalize on the prevailing [renewables] sector prospects by allocating all its accruals into additional capacity,” said Agarwal. “From the fourth quarter onwards, the company’s interest outflow will decline sharply on account of virtually no long-term debt on the books. Besides, the company will commission its dormant 250 MW module from the last quarter.”
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