You should read the following discussion of our financial condition and results of operations together with our restated financial statements for the nine months period ended for the financial year ended on 31st March 2024, 31st March 2023 and 31st March 2022 including the notes and significant accounting policies thereto and the reports thereon, which appear elsewhere in this Draft Red Herring Prospectus. You should also see the section titled "Risk Factors" beginning on page 25 of this Draft Red Herring Prospectus, which discusses a number of factors and contingencies that could impact our financial condition and results of operations. The following discussion relates to our Company, unless otherwise stated, is based on restated audited financial statements.
These financial statements have been prepared in accordance with Indian GAAP, the Companies Act and the SEBI (ICDR) Regulations and restated as described in the report of our auditors dated September 17, 2025 which is included in this Draft Red Herring Prospectus under the section titled "Financial Information as Restated" beginning on page 209 of this Draft Red Herring Prospectus. The restated financial statements have been prepared on a basis that differs in certain material respects from generally accepted accounting principles in other jurisdictions, including US GAAP and IFRS. We do not provide a reconciliation of our restated financial statements to US GAAP or IFRS and we have not otherwise quantified or identified the impact of the differences between Indian GAAP and U.S. GAAP or IFRS as applied to our restated financial statements.
This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those described under "Risk Factors" and "Forward Looking Statements" beginning on pages 25 and 18 respectively, and elsewhere in this draft red herring prospectus.
Accordingly, the degree to which the financial statements in this Draft Red Herring Prospectus will provide meaningful information depends entirely on such potential investors level of familiarity with Indian accounting practices. Our F.Y. ends on March 31 of each year; therefore, all references to a particular fiscal are to the twelve-month period ended March 31 of that year. Please also refer to section titled "Certain Conventions, Use of Financial, Industry and Market Data and Currency Presentation" beginning on page 13 of this draft red herring prospectus.
BUSINESS OVERVIEW
Our company, specializes in providing integrated turnkey solar energy solutions offering services including design, manufacturing, supply, installation, and commissioning of wide range of solar products, with a primary focus on Solar Water Pumping Systems. Additionally, we provide solar energy solutions for Solar Inverter Charge Systems and Solar Rooftop Power Systems. As on March 31, 2025, we have a qualitative experience in implementation of more than 61000 HP capacity of Solar Water Pumping Systems as part of Government Projects in India and this quantity will further increase to 100000 HP by end of FY 2025-26. We cater to various projects across India and are proudly empanelled as an esteemed Solar Partner with several State Government Departments including:
Our company has been awarded with ISO 9001:2015 for Quality Management System in the design, manufacturing, and supply of Solar PV Modules/Panels, Solar Pump Controllers, Solar Charge Controllers, and Solar Water Pumping Systems. Additionally, it covers the assembly, supply, installation, and commissioning of Solar Home Lighting Systems, Solar Home Systems, Solar PV Grid-Connected/Hybrid/Off-Grid Rooftop Power Plants, Ground-Mounted Solar Photovoltaic Power Plants, Solar Power Packs/Inverter Chargers, and Solar Street Lights.
Our Company is driven by a visionary leadership team. Promoter Mr. Manjeet Singh, a first-generation technopreneur with around 10 years of experience in electrical and solar manufacturing, leads strategic growth and daily operations. Whole Time Director Mr. Mehtab Singh, a former Indian Naval officer, oversees operations and government solar projects across India. They are supported by an experienced senior management team whose expertise ensures strong execution, sustained growth, and market expansion.
SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST AUDITED PERIOD
In the opinion of the Board of Directors of our Company, since the date of the last audited period i.e. March 31, 2025 as disclosed in this Draft Red Herring Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the trading or profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months.
KEY FACTORS AFFECTING OUR RESULTS OF OPERATION
SIGNIFICANT ACCOUNTING POLICIES:
Our significant accounting policies are described in the section entitled "Financial Statements as Restated" beginning from page 209 of the Draft Red Herring Prospectus
FINANCIAL KPIs OF THE COMPAMY
(? in lakhs)
Particulars |
31-03-2025 | 31-03-2024 | 31-03-2023 |
Total Income |
14,313.72 | 13,864.69 | 4,762.37 |
Growth (%) |
3.24% | 191.13% | 14.49% |
Revenue from Operation |
14,243.73 | 13,831.92 | 4,758.59 |
EBITDA (Operating Profit) |
2,357.50 | 782.55 | 226.46 |
EBITDA Margin (%) |
16.55% | 5.66% | 4.76% |
PAT |
1,585.38 | 493.93 | 58.26 |
Growth (%) |
220.97% | 747.79% | -0.08% |
PAT Margin (%) |
11.13% | 3.57% | 1.22% |
EPS (Basic & Diluted) - (As per end of Restated period) |
43.99 | 13.70 | 1.62 |
EPS (Basic & Diluted) - (Post Bonus with retrospective effect) |
9.77 | 3.05 | 0.36 |
Total Borrowings |
2,694.84 | 2,353.90 | 1,899.33 |
Total Net Worth (TNW) |
2,587.23 | 1,032.67 | 538.74 |
RONW (%) |
61.28% | 47.83% | 10.81% |
ROCE% |
44.81% | 23.38% | 8.17% |
Debt Equity Ratio (Total Borrowing/TNW) |
1.04 | 2.28 | 3.53 |
As certified by our peer review auditor having peer review certificate Himanshu Mohta & Associates vide their examination report dated 17-09-2025.
DETAILS OF SECTOR-WISE TURNOVER
(? in lakhs)
Particulars |
March 31, 2025 |
March 31, 2024 |
March 31, 2023 |
|||
Amount |
% of Total Turnover | Amount |
% of Total Turnover | Amount |
% of Total Turnover | |
Government |
14,115.36 | 99.10% | 12,393.81 | 89.60% | 4,222.52 | 88.73% |
Private |
128.40 | 0.90% | 176.72 | 1.28% | 181.25 | 3.81% |
PSU |
- | 0.00% | 1,261.38 | 9.12% | 354.81 | 7.46% |
Total of Revenue |
14,243.73 | 100.00% | 13,831.92 | 100.00% | 4,758.59 | 100.00% |
DETAILS OF GEOGRAPHICAL-WISE TURNOVER
(? in lakhs)
Particular |
31-03-2025 | % of Total Turnover | 31-03-2024 | % of Total Turnover | 31-03-2023 | % of Total Turnover |
Domestic |
14,243.73 | 100.00% | 13,831.92 | 100.00% | 4,758.59 | 100.00% |
Exports |
- | - | - | - | - | - |
Total |
14,243.73 | 100.00% | 13,831.92 | 100.00% | 4,758.59 | 100.00% |
DETAILS OF DOMESTIC TURNOVER
(? in lakhs)
State |
March 31, 2025 |
March 31, 2024 |
March 31, 2023 |
|||
| Amount | % of Total Turnover | Amount | % of Total Turnover | Amount | % of Total Turnover | |
Haryana |
12,270.60 | 86.15% | 12,300.72 | 88.93% | 4,244.84 | 89.20% |
Maharashtra |
1,942.36 | 13.64% | - | 0.00% | - | 0.00% |
Chandigarh |
20.34 | 0.14% | 0.72 | 0.01% | 0.15 | 0.00% |
Uttar Pradesh |
18.42 | 0.13% | - | 0.00% | 3.18 | 0.07% |
Rajasthan |
(7.97) | -0.06% | 1,360.97 | 9.84% | 354.81 | 7.46% |
Chhattisgarh |
154.99 | 1.12% | 0.00% | |||
Punjab |
11.66 | 0.08% | 65.39 | 1.37% | ||
Gujarat |
2.65 | 0.02% | 25.22 | 0.53% | ||
Himachal Pradesh |
0.20 | 0.00% | 40.37 | 0.85% | ||
Jammu & Kashmir |
24.62 | 0.52% | ||||
Total |
14,243.73 | 100.00% | 13,831.92 | 100.00% | 4,758.59 | 100.00% |
SUMMARY OF THE RESULTS OF OPERATION:
The following table sets forth select financial data from restated profit and loss accounts for the financial years ended on 31st March 2025, 31st March 2024 and 31st March 2023 and the components of which are also expressed as a percentage of total income for such periods.
Particulars |
For the Year Ended |
|||||
31-03-2025 |
% of Total Revenue | 31-03-2024 |
% of Total Revenue | 31-03-2023 |
% of Total Revenue | |
Income |
||||||
Revenue from Operations |
14,243.73 | 99.51% | 13,831.92 | 99.76% | 4,758.59 | 99.92% |
Other Income |
69.99 | 0.49% | 32.77 | 0.24% | 3.79 | 0.08% |
Total Income |
14,313.72 | 100.00% | 13,864.69 | 100.00% | 4,762.37 | 100.00% |
Expenditure |
||||||
Cost of Material Consumed |
11,232.20 | 78.47% | 12,704.82 | 91.63% | 4,259.30 | 89.44% |
Change In Inventories |
-38.26 | -0.27% | 5.99 | 0.04% | 38.31 | |
Employee Benefit Expenses |
175.05 | 1.22% | 110.31 | 0.80% | 84.58 | 1.78% |
Particulars |
For the Year Ended |
|||||
31-03-2025 |
% of Total Revenue |
31-03-2024 |
% of Total Revenue |
31-03-2023 |
% of Total Revenue |
|
Other Expenses |
467.29 | 3.26% | 195.87 | 1.41% | 107.20 | 2.25% |
Total Expenses |
11,836.29 | 82.69% | 13,016.99 | 93.89% | 4,489.39 | 94.27% |
Profit Before Interest, Depreciation and Tax |
2,477.43 | 17.31% | 847.70 | 6.11% | 272.98 | 5.73% |
Depreciation & Amortisation Expenses |
60.58 | 0.42% | 23.66 | 0.17% | 31.00 | 0.65% |
Profit Before Interest and Tax |
2,416.86 | 16.88% | 824.04 | 5.94% | 241.98 | 5.08% |
Financial Charges |
217.79 | 1.52% | 136.68 | 0.99% | 159.37 | 3.35% |
Profit before Taxation |
2,199.07 | 15.36% | 687.37 | 4.96% | 82.61 | 1.73% |
Provision for Taxation |
622.72 | 4.35% | 192.06 | 1.39% | 26.38 | 0.55% |
Earlier year Tax |
0.00% | 0.00% | 0.78 | 0.02% | ||
Provision for Deferred Tax |
-9.02 | -0.06% | 1.38 | 0.01% | -2.81 | -0.06% |
Total |
613.70 | 4.29% | 193.43 | 1.40% | 24.35 | 0.51% |
Profit After Tax but Before Extra-ordinary Items |
1,585.38 | 11.08% | 493.93 | 3.56% | 58.26 | 1.22% |
Extraordinary Items |
- | 0.00% | - | 0.00% | - | 0.00% |
Net Profit after adjustments |
1,585.38 | 11.08% | 493.93 | 3.56% | 58.26 | 1.22% |
Net Profit Transferred to Balance Sheet |
1,585.38 | 11.08% | 493.93 | 3.56% | 58.26 | 1.22% |
As certified by our peer review auditor having peer review certificate Himanshu Mohta & Associates vide their examination report dated 17-09-2025.
Our focus on functional and operational excellence has contributed to our track record of robust financial performance. For the Fiscal Year 2025, Fiscal 2024 and Fiscal 2023, we generated total income of ? 14,313.72 Lakhs, ? 13,864.69 Lakhs and ? 4,762.37 Lakhs respectively, EBITDA (operating profit) of ? 2,357.50 Lakhs, ? 782.55 Lakhs and ? 226.46 Lakhs respectively and net profit after tax of ? 1,585.38 Lakhs, ? 4,93.93 lakhs and ? 58.26 Lakhs respectively. We have reported Return on Net Worth of 61.28%, 47.83% and 10.81% for the Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. Our steady operating cash flows enable us to meet the present and future needs of our customers while our strong financial performance instil confidence in us.
The Revenue from operations has increased from ? 4,758.59 Lakhs in FY 2022-23 to ? 14,243.73 Lakhs in FY 2024-25 i.e. revenue from operation increased by ? 9,485.15 Lakhs (199.33 % for the said period) and PAT increased from ? 58.26 lakhs (1.22 % of total revenue) to ? 1,585.38 lakhs (11.08 % of total revenue) as per restated financial statements for the said period primarily. This increase in profits can be attributed to strategic cost reductions, Optimized Working Capital and Credit Utilization. During FY 2022–23, the Company primarily executed Work Orders awarded under tenders issued by Energy Efficiency Services Limited (EESL) for the design, manufacturing, supply, installation, and commissioning of Solar Water Pumping Systems under the PM KUSUM Yojna. These contracts, active from December 2021 to August 2023, were awarded at predetermined rates that remained fixed for their tenure and did not include price escalation clauses to mitigate rising r aw material costs. Consequently, the significant increase in raw material prices during this period eroded margins. From October 2023 onwards, the Company commenced execution of new Work Orders awarded under tenders floated by the Solar Energy Corporation of India (SECI) for Solar Water Pumping Systems under the same scheme. Unlike the earlier contracts, these were awarded at prevailing market-linked rates, which were substantially higher than those under EESL. Supplies under SECI Work Orders began in October 2023, leading to a progressive improvement in per-unit gross margins in the latter half of FY 2023–24. While FY 2023–24 was a transition year, comprising a mix of low-margin EESL projects and higher-margin SECI projects, FY 2024–25 reflected the full-year execution of SECI and other state government projects under the PM KUSUM Yojna at substantially higher rates. This shift resulted in a marked improvement in gross margin per unit without a commensurate increase in revenue.
MAIN COMPONENTS OF PROFIT AND LOSS ACCOUNT
Total Income
Our total income comprises of Revenue from Operations and Other Income.
Revenue from Operations
Our revenue from operations comprises of Revenue from Revenue from Design, Manufacture, Supply, Installation and Commissioning of Solar Products as well as Revenue from Manufacturing and supply of Solar PV Panels & Other Solar Products.
Other Income
Our other income comprises of Interest Income, Insurance claim, Foreign Exchange Fluctuation Gain and other miscellaneous receipts.
Expenditure
Our total expenditure primarily consists of Cost of Material Consumed, Changes in Inventory of Finished Goods, Employee Benefit Expenses, Depreciation & Amortization Expenses, Finance Cost, Other Expenses etc.
Cost of Rendering of Services
Cost of Material Consumed comprise of Change in Stock of Raw Materials, Consumables and other Direct Expenses like Power and Fuel Expenses, Repair and Maintenance Expenses, Freight, Rent and Other Miscellaneous Expenses.
Change in Inventory
Change in Inventory is difference between Opening and Closing Balance of Finished Goods.
Employee Benefit Expenses
Employee benefit expenses comprise of Salary and Wages including Bonus & Incentive, Remuneration to Directors, Staff welfare expenses, Gratuity Expenses etc.
Financial Charges
Financial Charges comprises of Interest on Secured and Unsecured loans and Bank Charges.
Depreciation and Amortization Expenses
Depreciation and Amortization Expenses comprise of depreciation on the Tangible assets of our company.
Other Expenses
Other expenses comprise of Administrative Expenses like Auditors Remuneration, Business Promotion Expenses, Freight, Loading and Unloading Charges, Legal and Professional Charges, Insurance Charges, Rates Fees Taxes, Office Expenses, Repairs, Rent Expense, Tours and Travels Expenses, Custom Duty and Interest, Commission Expenses, Discounts, Printing & Stationary Expense, Repairs and Maintenance, Software Development Expenses, Tour & Travel Expense, and other Miscellaneous Expenses.
Provision for Taxation
The provision for current tax is computed in accordance with relevant tax regulation. Deferred tax is recognized on timing differences between the accounting and the taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on balance sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a virtual certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized in future.
COMPARISON OF THE FINANCIAL PERFORMANCE OF FISCAL 2025 WITH FISCAL 2024
Total Revenue:
The total revenue consists of revenue from operation and other income and has been increased from ? 13,864.69 lakhs in FY 2023-24 to ? 14,313.72 lakhs in FY 2024-25 i.e. total revenue increased by ? 449.04 Lakhs for the said period primarily due to increase in revenue from operations of the Company.
Revenue from Operations:
The revenue from operations has been increased from ? 13,831.92 lakhs in FY 2023-24 to ? 14,243.73 lakhs in FY 2024-25
i.e. revenue from operation increased by ? 411.82 lakhs (2.98% for the said period). The increase in operational revenue was driven by the companys expansion into new regions and the successful acquisition of government contracts in Maharashtra and Punjab alongside its existing markets in Haryana.
Other Income:
The other income of the company increased from ? 32.77 lakhs in FY 2023-24 to ? 69.99 lakhs in FY 2024-25. This was majorly due to increase in Interest Income, Insurance Claims and other Miscellaneous Receipts.
Total Expenses
The total expenses (excluding Depreciation & Amortization Expenses, Financial Charges and provision for tax) for the FY 2024-25 were increased to ? 11,836.29 Lacs (82.69% of total revenue) as against ? 13,016.99 Lacs (93.89% of total revenue) in the FY 2023-24 i.e., total expenses decreased by ? 1,180.70 lakhs and profitability increased by 11.19 % of Total revenue. The decrease was mainly due to decrease in Cost of Materials Consumed during the year.
Cost of Materials Consumed:
The cost of rendering services for the FY 2024-25 was decreased to ? 11,232.20 Lakhs (78.47% of total income) as against ? 12,704.82 Lakhs in the FY 2023-24 (91.63% of total income) i.e., cost of materials consumed decreased by ? 1,472.62 lakhs and the profitability increased by 13.16 % of Total revenue. The decrease was primarily driven by a reduction in the cost of raw materials consumed during the year, along with lower direct expenses related to factory and godown rent, repair and maintenance, power and fuel, and other overheads.
Change in Inventory:
Change in inventory represents the difference between the opening and closing balance of finished goods. For FY 2024-25, the change amounted to -?38.26 lakhs as compared to ?5.99 lakhs in the FY 2023-24, thereby contributing to an improvement in profits by 0.31% of total revenue.
Employee Benefit Expenses:
The Employee Benefit Expenses for the FY 2024-25 was increased to ? 175.05 Lakhs (1.22% of total income) as against ?
110.31 Lakhs in the FY 2023-24 (0.80% of total income) i.e., employee benefit expenses increased by ? 64.74 lakhs and profitability decreased by 0.43% of Total revenue. This increase was primarily due to higher Directors Remuneration and an increase in salaries, wages, and bonuses resulting from annual increments.
Other Expenses:
The Other Expenses for the FY 2024-25 was increased to ? 467.29 Lakhs (3.26% of total income) as against ? 195.87 Lakhs in the FY 2023-24 (1.41% of total income) i.e., other expenses increased by ? 271.42 lakhs thereby reducing profitability by 1.85% of Total revenue. This increase was mainly due to increase in Indirect Expenses pertaining to Business Promotion, Commission, CSR Expense, Custom Duty and Interest, Electricity Expenses, Legal and Professional Charges, Insurance Charges, Rates Fees and Taxes, Office Expenses, Rental Expenses, Repairs and Maintenance other Miscellaneous Expenses.
Depreciation and Amortization Expenses:
The Depreciation expenses for FY 2024-25 was increased to ? 60.58 Lakhs (0.42% of total income) as against ? 23.66 Lakhs in the FY 2023-24 (0.17% of total income) i.e., depreciation increased by ? 36.92 lakhs. The increase in depreciation is primarily due to additions of fixed assets during the year.
Financial Charges:
The Financial Charges for the FY 2024-25 was increased to ? 217.79 Lakhs (1.52% of total income) as against ? 136.68 Lakhs in the FY 2023-24 (0.99% of total income) i.e., financial charges increased by ? 81.11 lakhs. This increase was mainly due to increase of Secured and Unsecured loan as per their utilization.
Profit/ (Loss) Before Tax:
The restated Profit Before Tax (PBT) for FY 2024–25 increased to ?2,199.07 lakhs (15.36% of total income) as against
?687.37 lakhs in FY 2023–24 (4.96% of total income), reflecting a rise of ?1,511.70 lakhs and an improvement of 10.41% in overall profitability relative to total revenue. While FY 2023–24 was a transition year, comprising a mix of low-margin legacy EESL projects and newly awarded SECI projects at higher rates, with only part of the revenue reflecting the benefit of these higher-margin orders since execution began post-October 2023. By contrast, FY 2024–25 marked the first full year of execution of SECI and other state government projects under the PM KUSUM Yojna, awarded at substantially higher rates. The company also negotiated shorter credit period terms with the suppliers for better procurement rates, owing to stronger liquidity and working capital availability due to deployment of the earnings alongside the enhanced cash credit limits, thus reducing the average procurement costs. This shift resulted in a significant improvement in per-unit gross margins without a proportionate increase in revenue, thereby strengthening the Companys profitability base and positioning it for more sustainable margin performance in subsequent years.
Total Tax Expenses:
The total tax expense for FY 2024-25 was increased to ? 613.70 Lakhs (4.29% of total income) as against ? 193.43 Lakhs (1.40% of total income) in the FY 2023-24. This increase was mainly due to increase in Profit before Tax as mentioned above. Since the company is earning higher amount than the last year, its paying higher tax as per applicable tax slab and other provision of Income Tax Act.
Profit/ (Loss) After Tax:
The restated Profit after Tax for FY 2024-25 has been increased to ? 1,585.38 Lakhs (11.08% of total income) as against ?
493.93 Lakhs (3.56% of total income) in the FY 2023-24. This increase was mainly a result of combined effort of all expenses together as discussed above.
COMPARISON OF THE FINANCIAL PERFORMANCE OF FISCAL 2024 WITH FISCAL 2023
Total Revenue:
The total revenue consist of revenue from operation and other income has been increased from ? 4,762.37 lakhs in FY 2022- 23 to ? 13,864.69 lakhs in FY 2023-24 i.e. total revenue increased by ? 9,102.31 lakhs. The increase was primarily due to increase in revenue from operations of the Company.
Revenue from Operations:
The revenue from operations has been increased from ? 4,758.59 lakhs in FY 2022-23 to ? 13,831.92 lakhs in FY 2023-24
i.e. revenue from operation increased by ? 9,073.33 lakhs. This significant rise was primarily driven by higher orders received from an existing customer, which the company was able to successfully fulfill with the support of extended credit terms from its suppliers. Furthermore, during FY 2023-24, the companys Cash Credit limits and Line of Credit facilities were enhanced and effectively utilised to execute work orders awarded at substantially higher rates compared to the first half of the same year, resulting in a marked improvement in profitability in the latter half of the year.
Other Income:
The other income of the company for FY 2023-24 was increased to ? 32.77 Lakhs as against ? 3.79 Lakhs in the FY 2022-
23. This was majorly due to increase in Interest Income, Insurance Claims and other Miscellaneous Receipts.
Total Expenses
The total expenses (excluding Depreciation & Amortization Expenses, Financial Charges and provision for tax) for the FY 2023-24 was increased to ? 13,016.99 Lacs (93.89% of total revenue) as against ? 4,489.39 Lacs (94.27% of total revenue) in the FY 2022-23 i.e., total expenses increased by ? 8,527.60 lakhs. The total expenses increased in absolute figures due to increase in operational volume during the fiscal year, as highlighted in the revenue from operations above but we are able to save profit by 0.38% of total revenue by optimising our resources and better bargaining power with high volume order.
Cost of Rendering Services:
The cost of rendering services for FY 2023-24 increased to ? 12,704.82 Lakhs (91.63% of total income) as against ? 4,259.30 Lakhs in FY 2022-23 (89.44% of total income), reflecting a rise of ? 8,445.53 Lakhs. Consequently, profitability declined by 2.20% of total revenue. The increase in costs was primarily driven by higher consumption of consumables owing to growth in revenue from operations, coupled with an increase in direct expenses such as rent, repair and maintenance, and power and fuel.
Employee Benefit Expenses:
The Employee Benefit Expenses for the FY 2023-24 was increased to ? 195.87 Lakhs (1.41% of total income) as against ?
107.20 Lakhs in the FY 2022-23 (2.25% of total income) i.e., employee benefit expenses increased by ? 88.67 lakhs. The employee expenses increased in absolute figures but we are able to save profit by 0.98% of total revenue. This increase was primarily due to higher Directors Remuneration and an increase in salaries, wages, and bonuses resulting from annual increments.
Other Expenses:
The Other Expenses for the FY 2023-24 was increased to ? 195.87 Lakhs (1.41% of total income) as against ? 107.20 Lakhs in the FY 2022-23 (2.25% of total income) i.e., other expenses increased by ? 88.67 lakhs. The other expenses increased in absolute figures but we are able to save profit by 0.84% of total revenue. The increase in other expenses was mainly due to increase in Indirect Expenses pertaining to Business Promotion, Commission, Electricity Expenses, Freight and Cartage, Legal and Professional Charges, Insurance Charges, Rates Fees and Taxes, Office Expenses, Rental Expenses, Repairs and Maintenance Tender Expenses, Tour and Travel Expenses other Miscellaneous Expenses.
Depreciation and Amortization Expenses:
The Depreciation and Amortization expenses for FY 2023-24 was decreased to ? 23.66 Lakhs (0.17% of total income) as against ? 31.00 Lakhs in the FY 2022-23 (0.65% of total income) i.e., depreciation decreased by ? 7.34 lakhs.
Financial Charges:
The Financial Charges for the FY 2023-24 was decreased to ? 136.68 Lakhs (0.99% of total income) as against ? 159.37 Lakhs in the FY 2022-23 (3.35% of total income) i.e., financial charges decreased by ? 22.70 lakhs (2.36 % for the said period). This decrease was mainly due to decrease in interest on secured loan as per their utilization and decline in Bank Charges.
Profit/ (Loss) Before Tax:
The restated Profit before Tax for FY 2023-24 was increased to ? 687.37 Lakhs (4.96% of total income) as against ? 82.61 Lakhs in the FY 2022-23 (1.73% of total income) i.e., profit before tax increased by ? 604.76 lakhs and overall profitability increased by 3.22% of Total revenue. During FY 2022–23, the Company primarily executed Work Orders awarded under tenders issued by Energy Efficiency Services Limited (EESL) for the design, manufacturing, supply, installation, and commissioning of Solar Water Pumping Systems under the PM KUSUM Yojna. These contracts, active from December 2021 to August 2023, were awarded at predetermined rates that remained fixed for their tenure and did not include price escalation clauses to mitigate rising raw material costs. Consequently, the significant increase in raw material prices during this period eroded margins. From October 2023 onwards, the Company commenced execution of new Work Orders awarded under tenders floated by the Solar Energy Corporation of India (SECI) for Solar Water Pumping Systems under the same scheme. Unlike the earlier contracts, these were awarded at prevailing market-linked rates, which were substantially higher than those under EESL. Supplies under SECI Work Orders began in October 2023, leading to a progressive improvement in per-unit gross margins in the latter half of FY 2023–24.
Total Tax Expenses:
The total tax expense for FY 2023-24 was increased to ? 193.43 Lakhs (1.40% of total income) as against ? 24.35 Lakhs (0.51% of total income) in the FY 2022-23. This increase was mainly due to increase in Profit before Tax as mentioned above. Since the company is earning higher amount than the last year, its paying higher tax as per applicable tax slab and other provision of Income Tax Act.
Profit/ (Loss) After Tax:
The restated Profit after Tax for FY 2023-24 has been increased to ? 493.93 Lakhs (3.56% of total income) as against ?
58.26 Lakhs (1.22% of total income) in the FY 2022-23. This increase was mainly due to increase in Profit before Tax as mentioned above.
AN ANALYSIS OF REASONS FOR THE CHANGES IN SIGNIFICANT ITEMS OF INCOME AND EXPENDITURE IS GIVEN HEREUNDER:
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.
There are no significant economic changes that may materially affect or likely to affect income from continuing operations. However, Government policies governing the sector in which we operate as well as the overall growth of the Indian economy has a significant bearing on our operations. Major changes in these factors can significantly impact income from continuing operations.
Apart from the risks as disclosed under Section "Risk Factors" beginning on page 25 in the Draft Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.
Our Companys future costs and revenues will be determined by demand/supply situation, inflation, Government
Policies and Taxation and Currency fluctuations.
Changes in revenue in the last financial years are as explained in the part "Comparison of the Financial Performance"
of above.
The Company is mainly engaged in providing services including design, manufacturing, supply, installation, and commissioning of wide range of solar products, with a primary focus on Solar Water Pumping Systems and all the activities of the business revolve around this main business. Therefore, there are no separate reportable segments.
Our Company has not announced any new product other than disclosed in this Draft Red Herring Prospectus.
Our business is not seasonal in nature as per the type of services we offered.
Competitive conditions are as described under the Chapters "Industry Overview" and "Our Business" beginning on
page 105 and 137 respectively of the Draft Red Herring Prospectus.
Except as mentioned in this Draft Red Herring Prospectus, no circumstances have arisen since the date of last financial statement until the date of filing the Draft Red Herring Prospectus, which materially and adversely affect or are likely to affect the operations or profitability of our Company, or value of its assets, or its ability to pay its liability within next twelve months.
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IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132 (Member ID - NSE: 10975 BSE: 179 MCX: 55995 NCDEX: 01249), DP SEBI Reg. No. IN-DP-185-2016, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, Merchant Banker SEBI Regn. No. INM000010940, RA SEBI Regn. No: INH000000248, BSE Enlistment Number (RA): 5016, AMFI-Registered Mutual Fund Distributor & SIF Distributor
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