Premier Energies shares gain as Q3 profit jumps 6x

Shares of Premier Energies rose over 1% in early trade on Tuesday after the country’s second largest solar cell manufacturer reported robust earnings for the third quarter of the current fiscal. The sentiment was further lifted after its board approved the interim dividend of 50 paisa per share (50%) for the financial year 2024-25.

Premier Energies share price opened 0.7% higher at ₹1,146.55, after ending 2.4% lower at ₹1,067.75 on the BSE in the previous session. In the first hour of trade so far, the renewable stock gained as much as 1% to hit a high of ₹1177.60, while the market capitalisation climbed to ₹48,217 crore. Meanwhile, the BSE Sensex and NSE Nifty gained up to 0.9% during the trade so far.

The shares of Premier Energies touched its 52-week high of ₹1,387.10 on December 17, 2024, rising 200% from its IPO price of ₹450 apiece. The solar cell manufacturer, which made its market debut on September 3, 2024, has delivered 27% return to its shareholders in the past six months, despite a correction of 16% in the last one month.

Premier Energies released its December quarter results post market hours on Monday, posting nearly six folds growth in its profit at ₹255 crore as compared to ₹43 crore reported in the same period a year ago. The profit was aided by rise in other income to ₹36 crore from ₹2 crore last year and a tax reversal of ₹21 crore.

The revenue of the solar cell and solar module manufacturer grew by 2.4 times at ₹1,713 crore in Q3 FY25, from ₹712 crore in the previous fiscal, on the back of decline in input costs and better operational efficiency. The Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) jumped 337% to ₹549.5 crore, while the margin expanded to 31.42% from 17.56% in December quarter of FY24.

In Q3 FY25, Premier executed orders worth ₹1,700 crore and new bookings at ₹2,200 crore. The current order book for 9M FY25 stands at 4.5GW valued at ₹6,900 crore of which 63% is for modules, 36% is for cells and 1% for EPC, Nuvama says in a report.

Premier aims to focus on domestic market and intends to retain current revenue mix of 97% and 3% in domestic and exports, respectively. The company remains optimistic about solar sector growth prospects in India, citing rising demand, favourable government policies, and improving technology, the brokerage says.

In wake of growing demand, Premier has proposed to increase its current solar module and cell manufacturing capacity to 9.1GW and 7GW, respectively by June 26. Adding to it, the company also plans to further backward integrate by setting up 2GW of wafer plant by FY26. To set up 1GW of module and cell capacity, management has indicated a capex requirement of ₹150 crore and ₹670 crore, respectively.

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