Websol Energy System Q3 results: Net loss at Rs 54 cr on asset impairment

Websol Energy System on Thursday reported a net loss of Rs 54 crore for the December 2023 quarter, mainly due to the impairment of a few assets.

"The company has reported a loss of Rs 54.64 crore for the quarter ending December 2023," a BSE filing stated.

The company explained that this loss will be carried forward and adjusted against future profits.

The reason for such loss is that few assets have to be impaired as new assets from the expansion will be replacing the same, it added.

The company also suffered a loss of Rs 6.83 crore in the year-ago quarter ended December 2022.

As per an estimation, Rs 96.86 crore of fixed assets (plant and machinery) would be impaired during the current financial year.

Further, it stated that certain fixed assets to the extent of Rs 26.23 crore may need to be impaired, and the same will be ascertained after detailed impairment analysis and commencement of commercial production to finally ascertain certain assets, which can continue to be used.

The company has invested in plant and machinery for undertaking significant expansion capacity in Cell and Module lines, and the Capital Work in Progress (Plant and Machinery) is about Rs 161 crore as of December 31, 2023.

This will be capitalised post-commencement of production in the upcoming quarter.

During the third quarter, the company raised Rs 23.52 crores through preferential allotment by issuing 21 lakhs new shares.

It also converted an existing promotor loan of Rs 14.66 crore by way of preferential allotment of 13,08,929 equity shares.

The funds raised have been used as equity to enable the company to complete the commissioning of the new project.

The paid-up capital of the company is now Rs 14,22,06,347. It has also completed a second drawdown of Rs 62.72 crore from India Renewable Energy and Development Agency, it noted.