Waaree Renewable Tech plunges 7% after profit drops 16% in Q3FY25 results

Waaree Renewable Technologies share price plummeted 7.03 per cent at Rs 1001.05 a piece on the BSE in Friday’s intraday trade. This came after solar power producer reported a decline in profit for the third quarter of the financial year 2024-25 (Q3FY25). 

 

The company's net profit fell 16.7 per cent year-on-year to Rs 53.5 crore for the quarter ended December 31, 2024, as per the exchange filing on Thursday. This drop in profit was accompanied by a 700 basis point contraction in its margin.

 

For Q3FY25, Waaree Renewable Technologies recorded a revenue increase of 11 per cent, reaching Rs 360 crore, compared to Rs 324 crore in the same quarter last year. However, its earnings before interest, tax, depreciation and amortisation (Ebitda) declined by 18 per cent, falling to Rs 72 crore from Rs 88 crore, with the Ebitda margin contracting to 20 per cent from 27 per cent in the previous year.

 

Despite the growth in revenues, the company's margins faced significant pressure due to a sharp rise in various costs. The cost of EPC contracts surged 31 per cent year-on-year to Rs 275.93 crore, while employee benefit expenses rose 64 per cent to Rs 7.92 crore. Additionally, other expenses more than doubled to Rs 4.57 crore, further impacting the overall profitability.

 

On the equities front, Waaree Renewable Tech share price has underperformed the market, falling 45 per cent in the last six months, while gaining 102 per cent in the last one year. In comparison, the BSE Sensex has slipped 5.4 per cent in the last six months, while rising 6.7 per cent in the last one year. 

 

Waaree Renewable Tech has a total market capitalisation of Rs 10,999.06 crore. Its shares are listed at a price to earnings multiple of 54.84 and at an earning per share of 19.24.

 

At 11:07 AM, the stock price of the company dropped by 2 per cent at Rs 1,055.10 a piece on the BSE. By comparison, the BSE’s Sensex was down 0.90 per cent to 76,353.00 level.