GRE Renew Enertech Ltd

GRE Renew Enertech Ltd Management Discussions

NSEBSE

₹114.05

(-3.88%)

Apr 13, 2026|05:30:00 AM

GRE Renew Enertech Ltd Share Price Management Discussions

AND RESULTS OF OPERATION

The following discussion is intended to convey managements perspective on our financial condition and results of operations the financial years ended March 31, 2025, 2024 and 2023 and. One should read the following discussion and analysis of our financial condition and results of operations in conjunction with our section titled "Financial Statements" and the chapter titled "Restated Financial Information" on page 209 of the Draft Red Herring Prospectus. This discussion contains forward-looking statements and reflects our current views with respect to future events and our financial performance and involves numerous risks and uncertainties, including, but not limited to, those described in the section entitled "Risk Factors " on page 30 of this Draft Red Herring Prospectus. Actual results could differ materially from those contained in any forward-looking statements and for further details regarding forward-looking statements, kindly refer the chapter titled "Forward-Looking Statements" on page 17 of this Draft Red Herring Prospectus. Unless otherwise stated, the financial information of our Company used in this section has been derived from the Restated Financial Information. Our financial year ends on March 31 of each year. Accordingly, unless otherwise stated, all references to a particular financial year are to the 12-month period ended March 31 of that year.

In this section, unless the context otherwise requires, any reference to "we", "us", "our" or "GRE" refers to GRE Renew Enertech Limited, our Company. Unless otherwise indicated, financial information included herein are based on our "Restated Financial Information" for the financial years ended March 31, 2025, 2024 and 2023 included in this Draft Red Herring Prospectus beginning on page 209 of this Draft Red Herring Prospectus.

BUSINESS OVERVIEW

Our Company was originally carrying on co-partnership business in name and style of "M/s. G.R.E. Electronics" in the terms and conditions contained in the Partnership Deed dated April 1, 1999. Further various amendment made in the aforesaid partnership deed dated April 1, 2005, April 1, 2007, February 5, 2008. Thereafter deed of Co-Partnery was entered on April 24, 2008, between all the partners of M/s. GRE Electronics, where all the parties hereto for the sake of smooth working and better and effective management and improvement and advancement of business, have agreed to register the said Joint Stock Company under Part IX of the Companies Act, 1956 as a Private Limited Company with the Name "GRE Electronics Private Limited". Accordingly, the partnership firm was converted into Private Limited Company in the name and style of "GRE Electronics Private Limited on October 24, 2008 pursuant to Part IX of the Companies Act, 1956 vide certificate of incorporation issued by Registrar of Companies, Gujarat, Dadra and Nagar Havelli. Subsequently our Company was converted into a Public Company vide special resolution passed by the Shareholders at the Extra Ordinary General Meeting held on 28^th May 2024, and consequently, the name of our Company was changed from "GRE Renew Enertech Private Limited" to "GRE Renew Enertech Limited" and a Fresh Certificate of Incorporation dated July 24^th, 2024 issued by the Registrar of Companies, Ahmedabad.

However various amendments in the name of the company took place between the said period, to know more about such amendments please refer to "Our History and Certain Corporate Matters" at page no. 168.

GRE Renew Enertech Limited is a company that specializes in providing solar energy solutions to industrial and commercial customers. We offer green energy solutions by installing on-site solar projects. Our business operations are primarily divided into two segments: Capital Expenditure (CAPEX) and Renewable Energy Service Company (RESCO). Under the CAPEX model, we offer Engineering, Procurement, construction, and operation of solar projects. In this model, customer invest in the Capital Expenditure at their own and our Company does Engineering, Procurement, Construction, and Operation on behalf of the client. Under the RESCO model, agreement is entered into with roof-top owners. The rooftop owners may consume the electricity generated, for which they have to pay a pre decided tariff to us as RESCO developer for the tenure of the agreement. In this model the assets (solar panels and installations) belong to Our Company. Under RESCO model, we may also develop ground mount project, in which case land for the project is owned by our Company, either on freehold or leasehold, as developer of the RESCO Project. Our Company in the past has not developed any major ground-mount project under RESCO model. Our Company is also an Indian manufacturer of Light Emitting Diode ("LED") lighting solutions. However, since last few years the prime focus of our Company is

in the Solar Energy segment only. The turnover from lighting business is only less than 5% of the total turnover of our Company as per the last audited financial statements for the Financial Year ended March 31, 2024.

For detailed information on the business of our Company please refer to "Our Business" beginning on page numbers 133 of this Draft Red Herring Prospectus.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL YEAR

As per mutual discussion between the Board of the Company and LM, in the opinion of the Board of the Company there have not arisen any circumstances since the date of the last financial statements as disclosed in this Draft Red Herring Prospectus and which materially and adversely affect or is likely to affect within the next twelve months except as follows:

• The authorised share capital of the Company has been increased from Rs. 12,50,00,000 to Rs. 25,00,00,000 by creation of 1,25,00,000 new Equity Share of Rs. 10 each vide ordinary resolution passed at the Annual General Meeting of the Company held on May 22, 2024

• Shareholder of our Company regularize the appointment of Mr. Mehul Ganesh Rajput, Mr Lokesh Laxmanbhai Dave, Ms. Kavita Khatri as an Independent Director and Mr. Mukeshkumar Prahladbhai Trivedi as a Director at the Annual General Meeting held on May 22, 2024.

• Change in status of the Company from Private limited to public limited vide special resolution passed at the Extra Ordinary General Meeting of the Company held on May 28, 2024.

• Shareholder of our Company have appointed/ re-appointed Mr. Kamleshkumar Dahyalal Patel as the Managing Director and Mr. Kirtikumar Kantilal Suthar and Mr. Mukeshkumar Prahladbhai Trivei as whole time directors of our Company in the extra-ordinary general meeting held on August 26, 2024.

• The Board of Directors of our Company have approved raising of funds by way of Initial Public Issueing vide its resolution dated March 29th, 2025.

• The Board of Directors of our Company have been authorised to raise the funds by way of Initial Public Issueing vide special resolution passed at the Extra-Ordinary General Meeting held on April 23rd, 2025.

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the section titled "Risk Factor" beginning on page 30 of this Draft Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

i. General economic and business conditions in the markets in which we operate and in the local, regional, national and international economies;

ii. Any change in government policies resulting in increases in taxes payable by us;

iii. Our ability to retain our key managements persons and other employees;

iv. Changes in laws and regulations that apply to the industries in which we operate;

v. Our failure to keep pace with rapid changes in technology;

vi. Our ability to make interest and principal payments on our existing debt obligations and satisfy the other covenants contained in our existing debt agreements;

vii. General economic, political and other risks that are out of our control;

viii. Inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

ix. Companys ability to successfully implement its growth strategy and expansion plans;

x. Failure to comply with regulations prescribed by authorities of the jurisdictions in which we operate;

xi. Inability to successfully obtain registrations in a timely manner or at all;

xii. Conflicts of interest with affiliated companies, the promoter group and other related parties;

xiii. Any adverse outcome in the legal proceedings in which we are involved;

xiv. Concentration of ownership among our Promoter;

xv. The performance of the financial markets in India and globally;

xvi. Global distress due to pandemic, war or by any other reason; and,

xvii. Other factors beyond our control.

KEY PERFORMANCE INDICATORS OF OUR COMPANY

In evaluating our business, we consider and use certain key performance indicators that are presented below as supplemental measures to review and assess our operating performance. The presentation of these key performance indicators is not intended to be considered in isolation or as a substitute for the Restated Financial Information included in this Draft Red Herring Prospectus. We present these key performance indicators because they are used by our management to evaluate our operating performance. Further, these key performance indicators may differ from the similar information used by other companies, including peer companies, and hence their comparability may be limited. Therefore, these matrices should not be considered in isolation or construed as an alternative to AS measures of performance or as an indicator of our operating performance, liquidity, profitability or results of operation. A list of our KPIs on the basis of Restated Standalone and consolidated financial statement for the Financial Years ended March 31, 2025, 2024 and 2023 is set out below.

ON STANDALONE BASIS

Particulars	Financial year ended
Particulars	31-Mar-25	31-Mar-24	31-Mar-23
Revenue from Operations¹ (Rs. in lakhs)	7965.87	7602.65	3397.45
EBITDA² (Rs. in lakhs)	971.90	1093.73	141.60
EBITDA Margin³ (in percentage)	12.20	14.39	4.17
Net Profits after Tax (PAT)⁴ (Rs. in lakhs)	700.72	805.35	77.13
PAT Margin/ Net Profit Margin⁵ (in percentage)	8.80	10.59	2.27
Total Equity Fund / Net Worth⁶ (Rs. in lakhs)	2179.82	1162.55	358.03
ROE/ Return on Net-Worth⁷ (in percentage)	41.93	105.93	23.61
Capital Employed⁸ (Rs. in lakhs)	2364.12	1612.72	831.38
ROCE/ Return on Capital Employed⁹ (in percentage)	41.29	68.67	16.08
Debt/Equity Ratio¹⁰ (Leverage Ratio)	0.07	0.39	1.32
Current Ratio¹¹	1.69	1.40	1.07

ON CONSOLIDATED BASIS

Particulars	Financial year ended
Particulars	31-Mar-25	31-Mar-24	31-Mar-23
Revenue from Operations¹ (Rs. in lakhs)	8371.73	9034.01	5221.90
EBITDA² (Rs. in lakhs)	948.29	1147.86	131.39
EBITDA Margin³ (in percentage)	11.33	12.71	2.52
Net Profits after Tax (PAT)⁴ (Rs. in lakhs)	702.64	990.52	89.27
PAT Margin/ Net Profit Margin⁵ (in percentage)	8.39	10.96	1.71
Total Equity Fund / Net Worth⁶ (Rs. in lakhs)	3122.54	2103.35	1113.66
ROE/ Return on Net-Worth⁷ (in percentage)	26.89	61.58	8.54
Capital Employed⁸ (Rs. in lakhs)	3306.25	2551.42	1583.76
ROCE/ Return on Capital Employed⁹ (in percentage)	29.60	51.04	11.56
Debt/Equity Ratio¹⁰ (Leverage Ratio)	0.05	0.22	0.43
Current Ratio¹¹	2.43	1.71	1.23

* As Certified by M/s. Dhiren H Pandya & Associates LLP., Chartered Accountant pursuant to their certificate

dated September 09, 2025, vide UDIN 25129612BMKOXQ2148.

Notes:

1. Revenue from operations means the Revenue from Operations as appearing in the Restated Financial Statements.

2. EBITDA means Earnings before interest, taxes, depreciation and amortization expense, which has been arrived at by obtaining the profit/ (loss) before exceptional items and tax for the year /period and adding back finance costs, depreciation, and amortization expense.

3. EBITDA margin is calculated as EBITDA as a percentage of revenue from operations.

4. Net Profit after tax represents the restated profits of our Company after deducting all expenses and taxes.

5. Net Profit margin is calculated as restated net profit after tax for the year/period divided by revenue from operations.

6. Net worth means the aggregate value of the paid-up share capital and other equity (excluding capital reserves) attributable to the shareholders.

7. Return on Net Worth (%) is calculated as Net Profit after tax attributable to owner of the company, as restated for the end of the year/ period divided by Average Net worth as at the end of the year/period.

Average net worth means the average of the net worth of current and previous financial year/period. Net worth means the aggregate value of the paid-up share capital and other equity (excluding capital reserves) attributable to the owners.

8. Capital employed is calculated as the total equity, including non-controlling interest, total debt (including borrowings and lease liabilities) and deferred tax liabilities (net of deferred tax assets)

9. Return on capital employed is calculated as Earnings before interest and taxes divided by average capital employed (average capital employed is calculated as average of the total equity, including non-controlling interest, total debt (including borrowings and lease liabilities) and deferred tax liabilities (net of deferred tax assets) of the current and previous financial year/period.

10. Debt- equity ratio is calculated by dividing total debt by total equity. Total debt represents long term and short- term borrowings, including lease liabilities. Total equity includes the aggregate value of the paid- up share capital, other equity and the non-controlling interest.

11. Current ratio is calculated by dividing the current assets by current liabilities.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Statement of Significant Accounting Policies, please refer to "Annexure D" of Restated

Financial Statements" beginning on page 209 of this Draft Red Herring Prospectus.

OUR RESULTS OF OPERATIONS

The following table sets forth selective financial data from our restated consolidated financial statement of profit

& loss for the financial years ended March 31, 2025, 2024 and 2023 the components of which are also expressed

as a percentage of revenue from operations for such periods:

RESULTS OF OUR OPERATION

(All figures are in Rs. in lakhs, unless otherwise specified)

Particulars	Consolidated			Standalone
	For the period ended March 31,			For the period ended March 31,
	2025	2024	2023	2025	2024	2023
Revenue:
Revenue from Operations	8371.73	9034.01	5221.90	7965.87	7602.65	3397.45
% Of total revenue	99.22%	98.03%	98.32%	99.55%	99.52%	99.76%
% Increase (decrease)	-7.33%	73.00%	_-	4.78%	123.78%	_-
Other Income	65.64	181.39	88.98	35.76	36.68	8.19
% Of total revenue	0.78%	1.97%	1.68%	0.45%	0.48%	0.24%
% Increase (decrease)	-63.81%	103.85%	-	-2.52%	347.59%	-
Total revenue	8437.38	9215.40	5310.88	8001.63	7639.33	3405.65
Variance	-8.44%	73.52%	_-	4.74%	124.31%	_-

Expenses:
Cost of materials consumed	6340.71	6984.16	4441.72	6088.80	5818.87	3043.50
% Of total revenue	75.15%	75.79%	83.63%	76.09%	76.17%	89.37%
% Increase (decrease)	-9.21%	57.24%	_-	4.64%	91.19%	_-
Change in inventories of wip, finished goods & stock in trade	36.71	6.12	29.11	20.21	18.43	-33.96
% Of total revenue	0.44%	0.07%	0.55%	0.25%	0.24%	-1.00%
% Increase (decrease)	499.71%	-78.97%	_-	9.67%	-154.27%	_-
Employees benefit expenses	294.52	217.66	225.01	218.51	108.39	89.26
% Of total revenue	3.49%	2.36%	4.24%	2.73%	1.42%	2.62%
% Increase (decrease)	35.32%	-3.27%	-	101.59%	21.43%	-
Finance costs	31.99	38.90	30.91	31.60	38.61	30.31
% Of total revenue	0.38%	0.42%	0.58%	0.39%	0.51%	0.89%
% Increase (decrease)	-17.75%	25.84%	-	-18.16%	27.37%	-
Depreciation and amortization	35.44	27.01	37.30	31.47	23.03	16.06
% Of total revenue	0.42%	0.29%	0.70%	0.39%	0.30%	0.47%
% Increase (decrease)	31.23%	-27.60%	-	36.66%	43.36%	-
Other expenses	751.49	678.21	394.66	666.46	563.23	157.05
% Of total revenue	8.91%	7.36%	7.43%	8.33%	7.37%	4.61%
% Increase (decrease)	10.81%	71.85%	-	18.33%	258.63%	-
Total expenses	7490.87	7952.05	5158.72	7057.05	6570.56	3302.23
% Of total revenue	88.78%	86.29%	97.13%	88.20%	86.01%	96.96%
% Increase (decrease)	-5.80%	54.15%	-	7.40%	98.97%	-
Profit before exceptional and extraordinary items and tax	946.51	1263.35	152.16	944.58	1068.77	103.41
% Of total revenue	11.22%	13.71%	2.87%	11.80%	13.99%	3.04%
% Increase (decrease)	-25.08%	730.26%	-	-11.62%	933.49%	-
Exceptional items	0.00	0.00	0.00	0.00	0.00	0.00
Profit before extraordinary items and tax	946.51	1263.35	152.16	944.58	1068.77	103.41
Extraordinary items	0.00	0.00	0.00	0.00	0.00	0.00
Profit before tax	946.51	1263.35	152.16	944.58	1068.77	103.41
% Of total revenue	11.22%	13.71%	2.87%	11.80%	13.99%	3.04%
% Increase (decrease)	-25.08%	730.26%	_-	-11.62%	933.49%	_-
Tax expense :
Current tax	213.22	274.96	62.29	213.22	265.55	25.68
% Of total revenue	2.53%	2.98%	1.17%	2.66%	3.48%	0.75%
Deferred tax	30.64	-2.13	0.60	30.64	-2.13	0.60
% Of total revenue	0.36%	-0.02%	0.01%	0.38%	-0.03%	0.02%
Profit (loss) for the period from continuing operations	702.64	990.52	89.27	700.72	805.35	77.13
% Of total revenue	8.33%	10.75%	1.68%	8.76%	10.54%	2.26%
% Increase (decrease)	-29.06%	1009.59%	_-	-12.99%	944.09%	_-

PRINCIPAL COMPONENTS OF STATEMENT OF PROFIT AND LOSS Revenue from operations

Revenue from operations mainly consists of revenue from solar business. The break-up of revenue from different business is as below:

Particulars	For the Year ended on March 31, 2025	For the Year ended on March 31, 2024	For the Year ended on March 31, 2023
Sales of Products
Export	405.86	1,475.93	1,824.45
% of Total Revenue	4.81%	16.02%	34.35%

Domestic	7,965.87	7,558.08	3,397.45
LED Sales	249.78	316.43	467.15
Solar Sales and Installation	7,675.33	7,241.65	2,930.30
Revenue from (Solar) Power Generation	40.76	0.00	0.00
% of Total Revenue	94.41%	82.02%	63.97%

Other Income

Other income primarily comprises of Dividend Income, Exchange Fluctuation Gain, Interest income (including interest from the fixed deposits), Profit on sale of Fixed Assets, and other Miscellaneous Income.

Purchase of Services

Purchase of Services primarily comprise of Raw Materials Consumption.

Change in Inventories of WIP, Finished Goods & Stock in Trade

Change in Inventories of WIP, Finished Goods & Stock in Trade comprise of increase/ (decrease) in stock of WIP, Finished Goods & Stock in Trade.

Employees benefit expenses

Employee benefits expenses include (i) Director Remuneration; (ii) Salaries, wages and Bonus; (iii) Contributions to Provident and Other Fund, (iv) Staff Welfare Expenses; and (v) Gratuity.

Depreciation and Amortisation expenses

Depreciation and amortisation expenses primarily include depreciation expenses on our Property, Plant and Equipment and amortization of intangible assets.

Finance Cost

Finance cost includes (i) Interest expenses on borrowings, (ii) Interest expenses on statutory dues, if any and (iii) Bank charges.

Other Expenses

Other expenses include (i) solar expenses; (ii) rental expenses; (iii) legal and professional charges; (iv) payment to auditors; (v) solar project expense; (vi) donation; (vii) ROC Fee; (viii) travel and conveyances expenses; (ix) utilities expense; (x) repair expenses; (xi) consultancy fees/ professional expenses; (xii) securities expense; (xiii) factory expenses; (xiv) insurance expenses; and, (xv) various miscellaneous expenses.

FISCAL YEAR ENDED MARCH 31, 2025 COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2024 ON THE BASIS OF RESTATED CONSOLIDATED FINANCIAL STATEMENT

Total Revenue

Total revenue has decreased by 8.44% from Rs. 9,215.40 lakhs in the financial year ended March 31, 2024 to Rs. 8,437.38 lakhs in the financial year ended March 31, 2025, The decrease is mainly due to decrease in total revenue of subsidiary company business.

Revenue from operations

Total revenue from operation has decreased by 7.33% from ^9,034.01 lakhs in the financial year ended March 31, 2024 to ^8371.73 lakhs in the financial year ended March 31, 2025. The decrease is mainly due to decrease in Revenue from operation of subsidiary company business.

Other Income

Total Other Income has decreased by 63.82% from ^181.39 lakhs in the financial year ended March 31, 2024 to ^65.64 lakhs in the financial year ended March 31, 2025. The decrease was primarily attributable to the absence of non-recurring items recognized in the previous year such as profit on sale of fixed assets, sale of

3/IQ

asset - Kn One Step and profit on sale of plot. Additionally, Air Machine income and foreign exchange gain reduced significantly, while rental income and export duty drawback recorded in financial year ended March 31, 2024 were not available in the current year. Despite higher interest income and contributions from commission-based earnings, the absence of these exceptional items led to an overall reduction in Other Income.

Total expenses

Total expense has decreased by 5.80% from ^7,952.05 lakhs in the financial year ended March 31, 2024 to Rs. 7,490.87 lakhs in the financial year ended March 31, 2025, primarily due to decrease in the Cost of Materials Consumed and finance cost of the company.

Purchase of Services

Total cost of material consumed has decreased by 9.21% from ^6,984.16 lakhs in the financial year ended March 31, 2024 to ^6,340.71 lakhs in the financial year ended March 31, 2025. Such decrease was mainly due to lower procurement of stock-in-trade and LED raw materials, while purchases in the solar segment continued to remain higher in line with operational requirements.

Change in Inventories of WIP, Finished Goods & Stock in Trade

Total cost of change in Inventories of WIP, Finished Goods & Stock in Trade has increase by 499.71% from Rs.6.12 lakhs in the financial year ended March 31, 2024 to Rs. 36.71 lakhs in the financial year ended March 31,2025. The decrease is mainly due to increase in Change in Inventories of WIP, Finished Goods & Stock in Trade of subsidiary company business

Employee Benefit Expense

Total employee benefit expense has increased by 35.32% from ^217.66 lakhs in the financial year ended March 31, 2024 to ^294.52 lakhs in the financial year ended March 31, 2025. The increase is majorly due to increase in Director Remuneration, Staff Salary and Staff Welfare.

Finance Costs

Total finance cost has increased by 17.75% from ^38.90 lakhs in the financial year ended March 31, 2024 to ^31.99 lakhs in the financial year ended March 31, 2025. The decrease is marginal in value terms by Rs.6.91 lakhs only.

Depreciation and Amortization Expense

Depreciation and Amortization expense has increased by 31.23% from ^27.01 lakhs in the financial year ended March 31, 2024 to ^35.44 lakhs in the financial year ended March 31, 2025. The increase is mainly due to addition of Solar Plant and Completion of CWIP in Current Year.

Other Expenses

Other expense has increased by 10.79% from ^678.21 lakhs in the financial year ended March 31, 2024 to ^751.49 lakhs in the financial year ended March 31, 2025. The increase is mainly due to higher solar direct expenses, solar project indirect expenses, administration & other expenses (LED), audit fees, advertisement expense, exchange difference expense, CSR expense and director sitting fees.

Profit before Tax

Profits before tax has decreased by 25.08 % from ^ 1,263.35 lakhs in the financial year ended March 31, 2024 to ^946.51 lakhs in the financial year ended March 31, 2025. The Decrease is mainly due to decrease in the revenue from operations and expenses not reducing in same proportion.

Profit after Tax

For the various reasons discussed above, we recorded a Decrease of 29.06% in profit after tax from ^990.52 lakhs in financial year ended March 31, 2024 to ^702.64 lakhs in financial year ended March 31, 2025.

FISCAL YEAR ENDED MARCH 31, 2024 COMPARED WITH THE FISCAL YEAR ENDED MARCH 31, 2023 ON THE BASIS OF RESTATED CONSOLIDATED FINANCIAL STATEMENT

Total Revenue

Total revenue has increased by 73.52% from ^5,310.88 lakhs in the financial year ended March 31, 2023 to ^9,215.40 lakhs in the financial year ended March 31, 2024, primarily due to increase in the revenue from operations.

Revenue from operations

Total revenue from operation has increased by 73.00% from ^5,221.90 lakhs in the financial year ended March 31, 2023 to ^9,034.01 lakhs in the financial year ended March 31, 2024. This increase in revenue from operation was mainly due to solar segment product & favorable business conditions like awareness in new upcoming potential buyers & various schemes of Central and State Government which increased overall demand in the solar industry so the simultaneously volume of business operations of the company are also increased in manifold.

Other Income

Total other income has increase by 103.85% from ^88.98 lakhs in the financial year ended March 31, 2023 to Rs. 181.39 lakhs in the financial year ended March 31, 2024. This increase was mainly due to income from foreign exchange gain, profit on sale of plot and sale of asset.

Total expenses

Total expense has increase by 54.15% from ^5,158.72 lakhs in the financial year ended March 31, 2023 to ^7,952.05 lakhs in the financial year ended March 31, 2024, primarily due to increase in the volume of business operations of the Company

Purchase of Services

Total cost of purchase of services has increase by 57.24% from ^4,441.73 lakhs in the financial year ended March 31, 2023 to Rs. 6,984.15 lakhs in the financial year ended March 31, 2024. Such increase was due to increase in purchase of raw material related with Solar in line with increase in sales.

Change in Inventories of WIP, Finished Goods & Stock in Trade

Total cost of change in Inventories of WIP, Finished Goods & Stock in Trade has decrease by 78.93% from ^29.10 lakhs in the financial year ended March 31, 2023 to Rs. 6.13 lakhs in the financial year ended March 31, 2024. Such decrease was due to decrease in closing stock of finished goods and WIP (LED).

Employee Benefit Expense

Total employee benefit expense has decreased by 3.28% from ^225.02 lakhs in the financial year ended March 31, 2023 to ^217.65 lakhs in the financial year ended March 31, 2024. The decrease is marginal and due to decrease in staff salary of LED Business.

Finance Costs

Total finance cost has increased by 25.84% from ^30.91 lakhs in the financial year ended March 31, 2023 to ^38.90 lakhs in the financial year ended March 31, 2024. The increase is marginal in value terms by Rs.7.99 lakhs only.

Depreciation and Amortization Expense

Depreciation and Amortization expense has decreased by 27.60% from ^37.30 lakhs in the financial year ended March 31, 2023 to ^27.01 lakhs in the financial year ended March 31, 2024. The decrease is mainly due to decrease in depreciation of subsidiary company business.

Other Expenses

Other expense has increase by 71.85% from ^394.66 lakhs in the financial year ended March 31, 2023 to ^678.21 lakhs in the financial year ended March 31, 2024. The increase is mainly due to significantly increase direct expense on solar, solar related projects, professional expense, rental expense or administrative & other expenses.

Profit before Tax

Profits before tax has increased by 730.26 % from ^ 152.16 lakhs in the financial year ended March 31, 2023 to ^1,263.35 lakhs in the financial year ended March 31, 2024. The increase is mainly due to increase in the volume of business operations of the Company as well as first moover into the solar ground mount segment business with innovative technology USP product & saving of expenses which increase the PAT margin of the company

Profit after Tax

For the various reasons discussed above, we recorded an increase of 1009.59% in profit after tax from ^89.27 lakhs in financial year ended March 31, 2023 to ^990.52 lakhs in financial year ended March 31, 2024.

INFORMATION REQUIRED AS PER ITEM (II) (C) (I) OF PART A OF SCHEDULE VI TO THE SEBI REGULATIONS:

1. Unusual or infrequent events or transactions

Except as described in this Draft Red Herring Prospectus, during the periods under review there have been no transactions or events, which in our best judgment, would be considered unusual or infrequent

2. Significant economic changes that materially affected or are likely to affect income from continuing operations

Other than as described in the section titled "Risk Factors" beginning on page 30 of this Draft Red Herring Prospectus, to our knowledge there are no known significant economic changes that have or had or are expected to have a material adverse impact on revenues or income of our Company from continuing operations.

3. Income and Sales on account of major product/ main activities

Income and sales of our Company is on account of sale of products mainly relating to solar business under Capex business.

4. Whether the company has followed any unorthodox procedure for recording sales and revenues

Our Company has not followed any unorthodox procedure for recording sales and revenues.

5. Future changes in relationship between costs and revenues, in case of events such as future increase in employees or material costs or prices that will cause a material change are known

Our Companys future costs and revenues can be impacted by an increase in employee costs, as the Company looks to hire talent with new skills and capabilities and also for development of new products and services.

6. Future relationship between Costs and Income

Our Companys future costs and revenues will be determined by competition, demand/supply situation, Indian government policies, foreign exchange rates and interest rates quoted by banks & others.

7. Extent to which material increases in net sales or revenue are due to increased sales volume, introduction of new products or services or increased sales prices.

Increases in our revenues are by and large linked to increases in the volume of business.

8. Total turnover of each major industry segment in which the issuer company operates

The Company is mainly operating in Solar EPC and realted business. Relevant industry data, as available, has been included in the chapter titled "Our Industry " beginning on page 118 of this Draft Red Herring Prospectus.

9. Status of any publicly announced new products or business segments

Our Company has not announced any new services and product and segment / scheme, other than disclosure in this Draft Red Herring Prospectus.

10. The extent to which the business is seasonal Our Companys business is not seasonal.

11. Any significant dependence on a single or few suppliers or customers

Our Company is dependent on a single or few customers. For further details refer the chapter titled "Risk factor" and "Our Business" on page 30 and 133 of Draft Red Herring Prospectus.

12. Competitive Conditions

We face competition from existing and potential competitors which is common for any business. We have, over a period of time, developed certain competitive strengths which have been discussed in section titled "Our Business" on page 133 of this Draft Red Herring Prospectus.

GRE Renew Enertech Ltd Management Discussions

GRE Renew Enertech Ltd Share Price Management Discussions

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES