Waaree Energies Business Model

Waaree Energies is at the forefront of India's renewable energy revolution, offering a comprehensive range of solar solutions tailored to meet the needs of both domestic and international markets. With a commitment to innovation, quality, and sustainability, the company has established itself as a key player in the solar industry. Its vertically integrated business model encompasses everything from manufacturing and project execution to ongoing support and financial flexibility. Below is a breakdown of Waaree Energies' business model:

1. Solar Panel Manufacturing  

Waaree Energies is a leading manufacturer of high-efficiency solar panels designed for on-grid, off-grid, and hybrid solar power plants. With a strong emphasis on quality and innovation, the company produces a range of panels suited for both domestic and international markets. Its commitment to exporting ensures a global presence, solidifying its position as a major player in the renewable energy industry.

2. Engineering, Procurement, and Construction (EPC) Services  

Waaree Energies delivers end-to-end EPC services, covering a wide range of solar installations such as rooftop solar, floating solar, and ground-mounted solar projects. This comprehensive approach allows clients to benefit from a single point of contact for project design, procurement of equipment, and construction, ensuring a seamless transition from planning to execution.

3. Operations and Maintenance (O&M)

To ensure the longevity and optimal performance of solar plants, Waaree Energies provides expert O&M services. These services are tailored to maximize energy output and extend the lifespan of solar plants, making them a trusted partner for plant owners seeking maximum return on their investment.

4. Solar Farm Solutions  

Waaree Energies offers solar farm solutions for both private and utility-scale projects across India. They provide flexible financial models, including the CAPEX (capital expenditure) model, where the client owns the asset, and the OPEX (operational expenditure) model, where Waaree retains ownership and the client pays for the energy generated. This flexibility allows clients to choose a solution that best fits their financial strategy while ensuring access to reliable solar energy.

5. Renewable Energy Service Company Model  

Waaree Energies extends its expertise to rooftop solar projects under the RESCO model. In this model, Waaree finances, installs, operates, and retains ownership of the solar infrastructure, while the client benefits from the energy produced without upfront capital investment. This makes it an attractive option for businesses looking to reduce energy costs without the financial burden of ownership.

6. Backward Integration for Enhanced Efficiency 

To further enhance its production capabilities, Waaree Energies is investing in backward integration by commissioning a state-of-the-art solar cell plant. With plans to increase its cell manufacturing capacity to 5.4 GW by the end of FY 2023-24, Waaree is positioning itself to be more self-reliant, ensuring consistent quality control and supply chain efficiency. This move aligns with the company's vision to reduce dependency on external suppliers, enhance margins, and offer competitive pricing to its clients.

Key Financial Highlights for FY24 Vs FY23:

1. Revenue Growth: The company's revenue from operations surged by 69%, reaching Rs. 11,397 crore in FY24 compared to Rs. 6,750 crore in FY23. This substantial increase underscores Waaree’s strong market position and expanding footprint in the renewable energy sector.

2. Total Expenses: Waaree Energies’ total expenses grew by 66% in FY24, amounting to Rs. 10,239 crore, up from Rs. 6,162 crore in FY23. The increase in expenses aligns with the company’s scale of operations and expansion activities, showcasing its investment in growth.

3. Profit Growth: - Profit Before Tax (PBT) witnessed a sharp rise of 156%, totaling Rs. 1,734 crore in FY24 compared to Rs. 677 crore in FY23. This impressive growth is indicative of Waaree’s ability to control costs while driving revenues.

The company’s Net Profit surged by 160%, reaching Rs. 459 crore in FY24, as opposed to Rs. 176 crore in FY23, reflecting a significant improvement in profitability.

4. Balance Sheet: 

The company’s Total Assets increased by 52%, reaching Rs. 11,313 crore in FY24, compared to Rs. 7,419 crore in FY23. This asset growth highlights Waaree’s aggressive expansion and investment in infrastructure and technology.Similarly, Total Equity and Liabilities also grew by 52% to Rs. 11,313 crore, reflecting a balanced growth in assets and liabilities.

5. Cash Flow Management:

a) Net Cash Generated from Operating Activities rose by 48%, totaling Rs. 2,305 crore in FY24, up from Rs. 1,560 crore in FY23, highlighting the company’s strong cash generation capabilities from core operations.

b) Net Cash Used in Investing Activities increased to Rs. 3,340 crore in FY24 from Rs. 2,093 crore in FY23, indicating Waaree's continued investments in growth, particularly in expanding its production capacity and enhancing technological capabilities.

c) Net Cash Generated from Financing Activities amounted to Rs. 909 crore in FY24, up from Rs. 642 crore in FY23, demonstrating a stable inflow from financial sources to support the company’s expansion plans.

Installed Capacity and Solar Cell Factory Update 

Waaree Energies Limited, recognized as India’s largest solar module manufacturer, boasts an impressive installed capacity of 12 gigawatts (GW). The company operates its manufacturing plants across multiple locations in Gujarat, including Chikhli, Surat, Tumb, and Nandigram. 

Looking ahead, Waaree Energies is planning to further expand its manufacturing capabilities with a new solar module production facility. This facility is set to have an initial capacity of 3 GW per year, and it is expected to be operational by December 2024. As part of its long-term vision, Waaree intends to increase this capacity to 5 GW and integrate a 5 GW solar cell manufacturing unit by 2027. 

To strengthen its growth, Waaree has already secured a significant offtake agreement with SB Energy, ensuring a steady demand for its production in the coming years. Through these expansions, Waaree aims to solidify its position as a leader in the renewable energy sector, contributing to India's clean energy goals.

Valuation and Order Book 

As of September 2024, Waaree Energies holds a valuation of ₹57,862 crore. The order book for FY24 shows a significant increase, growing to 19,928.12 MW, compared to 18,060.00 MW in FY23. This reflects strong demand and growth in the renewable energy sector, with Waaree Energies continuing to expand its market presence.