INDUSTRY STRUCTURE AND DEVELOPMENTS KEY HIGHLIGHTS
India, a global leader in deployment of solar and wind assets with over 109 GW of
installed capacity accounts for ~ 5 % of the Global total solar and wind assets. India is
a forerunner in the renewable race right behind the global majors like China, USA and
Germany. It is estimated that India will add 49 GW of solar and wind by 2024-2025. Your
company makes use of its three major strengths i.e. a High-quality solar panel &
Balance of System (BOS) Manufacturer, a very strong turnkey EPC and IPP player especially
in the Commercial & Industrial segment. SWELECT group has made significant through its
strong channel partner network has made great strides in sales of Solar Panels and Balance
of System (BOS).
SOLAR POWER GENERATION AND SYSTEMS INTEGRATION (NEW ADDITIONS)
1. SWELECT has successfully designed, engineered and commissioned more than 42 MW of
Projects for its various clients under its project sales vertical.
2. SWELECT and its group have been successful in adding more than 6.5 MW of Solar
Projects in its Energy sales portfolio totaling it to 140 MW of cumulative capacity under
the IPP vertical.
3. SWELECT is proud to announce that its installed 217 kWhr ESS (Energy Storage System)
is under extensive testing and evaluation.
BUSINESS DEVELOPMENT IN NEW MARKETS
SWELECT is happy to announce that one of its step down subsidiary SWELECT HHV Solar
Photovoltaics Private Limited has successfully completed the construction of fully
Automated State-of-the-Art with new 500 MW production capacity of Solar PV Module
Manufacturing plant at Coimbatore. The trial production started during February 2023 and
this will make
SWELECT as one of the leading Solar modules manufacturers in India, with a capacity to
cater both Domestic and International markets. The facility is equipped to manufacture
high-performance, high-quality modules backed by Tier 1 rating by Bloomberg
New Energy Finance (BNEF). The solar modules are certifiedfor IEC, UL and later PVEL,
which are industry leading quality standards ensuring best in class quality and product
reliability. The solar modules will undergo more than 40 plus stringent quality checks and
tests promising the highest quality and on field performance.
IRON AND STEEL FOUNDRY PRODUCTS
AMEX Alloys Pvt. Limited, a Wholly Owned Subsidiary (WOS) of SWELECT Energy Systems
Ltd, is an ISO 9001- 2015 certified Foundry located in Coimbatore sub urban area. AMEX is
also qualifiedwith the following Accreditation / Qualification to stay as a strong
producer of Quality Castings for the Global markets.
Accreditation / Certification ISO 9001:2015 / PED / AD W0 by TUV NORD / Indian Boiler
Regulation (IBR)
AMEX Alloys Pvt Ltd is engaged strongly with customers in Germany, Italy, Spain,
Poland, and USA besides many Indian Industries. During the year AMEX added new customers
namely Farries and Dynaflow USA, Samson AG from Germany, RBR
Italy and Zetkama from Poland.
The overall Global and Domestic Market / Application areas where High Quality castings
are being supplied are: - Oil & Gas - Transportation - Marine - Pharmaceuticals -
Infrastructure - Agriculture - Water Distribution - Hydro Power and many Flow Control
applications
AMEX has three divisions of foundry units viz.,
Alloys Division: Manufacturing, Machining & Export of a wide range of Steel
Castings (using CO2 sand Process, cake moulds and a range of intricate core assembly based
complex moulds). The range of castings cover Carbon Steel/ Alloy Steel / Stainless Steel /
Duplex and Special alloy steel. The division is making weight range of a single Casting
from 10 Kg to 3520 Kg.
Certified ISO 45001 : 2018 By TUV Nord and PESR certificate by TUV U K
Iron Foundry Division: Manufacturing, Machining & Sales in domestic markets and
Export of a wide range of Iron Castings in Grey Iron and Spheroidal Graphite Iron (using
CO2 and Green Sand Process) metallurgy.
The division is making weight range of a single Casting from 1 Kg to 800 Kg.
Investment Casting Division: Design, Manufacturing, Machining & Export of a
wide range of Investment Castings (using lost Wax process and advanced Machinery).
The division is making the weight range of a single Casting from 100 grams to 73 Kg.
Certified ISO 45001: 2018 By TUV Nord and PESR certificate by TUV UK
The above capabilities make AMEX Brand as India?€™s first Foundry Group
offering all the above under one roof and a One- Stop- Solution provider.
AMEX - Green Initiatives
The foundry uses very low quantum of new sand by adapting to sand reclamation process
thus reducing use of natural resources. Also majority of its Energy consumption is from
Green Energy sources (Solar and Wind Power) i.e. from AMEX?€™s own Solar plant
and from SWELECT Group. As a WOS of SWELECT, AMEX Foundries have the distinction of
running the foundry production with more than 85% of the Energy from Renewable Energy
Sources and this is yet another special status.
Foundry with latest state of art facilities
AMEX has been deploying the most advanced casting design tool (MAGMA Simulation
Software). The design team has been trained in MAGMA and this has enhanced AMEX to secure
new orders from the existing customers and new customers from Europe. During this
Financial Year, AMEX also exhibited its special skills and produced a range of intricate
castings like Diverter valves, Flame Arrestor Bodies and Special Castings of higher weight
range for German customers.
The Company has earned foreign exchange of over Rs. 8,074.53 Lakhs in Euros and US
Dollars during the financial year 2022-2023 from the Exports to Europe, and USA despite
Russia and Ukraine war.
AWARDS / CREDENTIALS
Performance Excellence Awards, 2022
Excellence in Performance
Ground Mounted Solar Category (10MW SWELECT AAI PH-II)
Soft disk Solar Awards 2022
Soft Disks No. 1 Indian Rooftop Solution Company of the Year.
Soft Disks No. 1 Indian Grid-Sharing Solar Power Solution Provider of the Year
Soft Disks No. 1 Indian Off-Grid Sharing Solar Power Solution Provider of theYear
Soft Disks No. 2 Indian SPCU Manufacturer of the Year
Soft disk Solar Awards 2022
No. 1 company for having completed a large number of Roof Top Installations in the
country - 2022
Best Project of the Year 2022
Awarded by First view media ventures private limited
7 MW Solar PV Plant on a Turnkey basis for Milky Mist Dairy Food Private Limited.
State Market Leader Award: EPC - 2022
Awarded by First view media ventures private limited
Winner of the State Market Leader Award: EPC at the STATE BUSINESS MEET AWARDS 2022-
TAMIL NADU
Rooftop EPC Company of Year 2023
Won the Rooftop EPC Company of Year: Under Bronze Category in the event SuryaCon
Coimbatore Conference.
OPPORTUNITIES
With growing awareness in terms of Environment Social and Governance (ESG), stricter
industrial decarbonisation especially in
Commercial & Industrial segment has significantly increased the adoption of clean
energy by participating entities.
Government policy support in domestic manufacturing in terms of import barriers and
subsidy for local manufacturing has opened up more opportunities for clean tech companies.
The Government run Approved List of Models and Manufacturers (ALMM) program is also
an added incentive for more Indian entities participating in manufacturing in solar energy
space.
THREATS
Increasing volatilities in the input raw material prices owing to the geo political
situation has caused a momentary set back in deployment of renewable energy. Uncertain
Government policies, land acquisition challenges and Grid interconnection issues are some
of the constant threats which the renewable industry has to overcome. However, these
challenges can be overcome gradually by careful planning and diligence.
SEGMENT–WISE OR PRODUCT-WISE PERFORMANCE (STANDALONE)
The Business of the Company falls under a single primary segment i.e., "Solar and
other related activities" for the purpose of
IND AS 108.
The Product-wise performance of the Company for the financial years 2021-2022 and
2022-2023 are provided below:
(Rs. in Lakhs)
|
|
Revenue |
|
| Product Name |
|
|
|
|
31.3.2023 |
|
31.3.2022 |
| Solar Photovoltaic Panels |
4,644.77 |
|
6,742.19 |
| Solar Power Generating Systems and accessories |
10,062.37 |
|
11,584.75 |
| Traded Goods |
912.31 |
|
268.60 |
| Solar Power |
3,879.61 |
|
3,772.26 |
| Wind Power |
93.84 |
|
98.70 |
| Sale of Services |
4,038.52 |
|
4,070.02 |
| Grand Total |
23,631.42 |
|
26,536.52 |
OUTLOOK
The future for renewables looks very promising with all the participating countries
rapidly pushing for decarbonisation of the industrial process and getting very mindful of
carbon leakage which will play a very crucial role in clean energy transition.
With increasing interest in green hydrogen, carbon capture projects, energy storage and
in electrification of industrial process will drive the clean energy deployment. Combined
with increasing grid tariff and attractive price discovery in the competitive bidding of
renewable energy procurement, the future and the business outlook looks very promising.
RISKS AND CONCERNS
There are no notable risks or concerns as SWELECT and its management are constantly
monitoring the market dynamics both domestic and international. The leadership team has
taken all the major factors in consideration and are proactively working to mitigate any
risks which may arise.
RISK MANAGEMENT COMMITTEE
The Company is not falling under the category as specified in Regulation 21(5) of SEBI
(Listing Obligations and Disclosure
Requirements) Regulations, 2015. However, the Company constituted a Risk Management
Committee to continuously monitor business and operations risk through an efficient risk
management system.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an Internal Control System, commensurate with the size, scale and
complexity of its operations. The scope and authority of the Internal Audit function is
defined by the management.
The internal audit report for every quarter ended are being submitted to the Audit
Committee of the Board by the Internal Auditors.
The Internal Auditors monitor and evaluate the efficacy and adequacy of internal
control system in the Company, its compliance with operating systems, accounting
procedures and policies at all locations of the Company. Based on the report of internal
auditors, the Audit Committee/Management of the Company undertakes corrective action in
the respective areas and thereby strengthens the controls.
FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE Standalone
During the year, the Company registered a turnover of Rs. 24,983.57 Lakhs against the
previous year turnover of
Rs. 28,572.86 Lakhs. The Company has reported a Net Profit after tax for the current
year Rs. 934.42 Lakhs against the previous year Net Profit ofRs. 3,379.07 Lakhs.
The Earnings per Share (Basic and Diluted) for the year 2022-2023 stood at Rs. 6.16.
Consolidated
During the year, the Company registered a turnover of Rs. 38,418.12 Lakhs against the
previous year turnover of Rs. 39,111.10
Lakhs.
The Company has reported a Net Profit after tax for the current year Rs. 642.11 Lakhs
against the previous year Net Profit of Rs. 3,241.74 Lakhs.
The Earnings per Share (Basic and Diluted) for the year 2022-2023 stood at Rs. 4.24.
The reason for reduction in Profit (standalone and consolidated) of the Company for the
year ended 31.3.2023 as against previous year is described in the Note No.40 and 45 of the
Financial Statement annexed in this report.
THE FINANCIAL HIGHLIGHTS OF THE COMPANY FOR TEN YEARS (Standalone). (Rs. In Lakhs)
| S.No |
Particulars |
2013-14 |
2014-15 |
2015-16 |
2016-17 |
2017-18 |
2018-19 |
2019-20 |
2020-21 |
2021-22 |
2022-23 |
| 1 |
Revenue from operations |
5,240.30 |
4,887.50 |
16,315.86 |
17,006.97 |
17,382.92 |
11,984.43 |
14,204.04 |
18,453.22 |
28,572.86 |
24,983.57 |
| 2 |
Other Income |
2,936.00 |
2,478.58 |
3,339.12 |
4,615.85 |
3,807.93 |
3,494.58 |
3,170.98 |
3,279.04 |
3,059.14 |
3,226.97 |
| 3 |
Total income from operations |
8,176.30 |
7,366.08 |
19,654.98 |
21,622.82 |
21,190.85 |
15,479.01 |
17,375.02 |
21,732.26 |
31,632.00 |
28,210.54 |
| 4 |
Employee Cost |
597.69 |
665.75 |
1,112.23 |
1,151.30 |
1,140.03 |
1,264.19 |
1,194.66 |
1,217.53 |
1,410.73 |
1,488.47 |
| 5 |
Excise Duty |
158.17 |
54.49 |
61.34 |
44.97 |
8.50 |
- |
- |
- |
- |
- |
| 6 |
Other Operating Expenditure |
4,363.61 |
4,216.20 |
14,232.86 |
14,941.83 |
15,031.85 |
10,544.70 |
12,484.42 |
14,595.67 |
23,087.27 |
20,839.81 |
| 7 |
Profit Before Finance cost, Depreciation and
Amortisation and Tax |
3,056.83 |
2,429.64 |
4,248.55 |
5,484.72 |
5,010.47 |
3,670.12 |
3,695.94 |
5,919.06 |
7,134.00 |
5,882.26 |
| 8 |
Finance cost |
116.09 |
1,059.90 |
960.96 |
529.55 |
580.58 |
744.63 |
981.15 |
1,249.12 |
2,063.49 |
2,538.06 |
| 9 |
Depreciation and amortization |
446.23 |
871.71 |
1,251.04 |
1,114.44 |
1,343.04 |
1,415.41 |
1,659.43 |
1,547.79 |
1,691.44 |
2,371.02 |
| 10 |
Profit before tax |
2,494.51 |
294.91 |
2,118.22 |
3,840.73 |
3,086.85 |
1,540.08 |
1,055.36 |
3,122.15 |
3,379.07 |
973.18 |
| 11 |
Profit/(Loss) |
2,494.51 |
132.94 |
1,201.07 |
2,937.85 |
2,346.93 |
1,105.35 |
(1,673.16) |
2,431.15 |
3,379.07 |
#934.42 |
|
after tax |
|
|
|
|
|
|
|
|
|
|
| 12 |
EPS (Rs.) |
24.68 |
1.32 |
11.88 |
29.07 |
23.22 |
7.29 |
(11.04) |
16.04 |
22.29 |
6.16 |
| 13 |
Interim Dividend paid (Rs. per share) |
- |
- |
3.00 |
- |
- |
- |
1.25 |
- |
- |
- |
| 14 |
Dividend paid / proposed (Rs. per share) |
9.00 |
2.50 |
1.00 |
4.00 |
4.00 |
2.50 |
0.75 |
3.00 |
3.00 |
*1.20 |
# Net Profit after tax is post adjustment of loss on discontinued operations (due to
technology obsolescence) as per Note no.40 of the
Financial Statements.
* Proposed
DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS
Details of significant changes in key financial ratios along with detailed explanations
are given in the Note No.43 of the Financial
Statements.
DETAILS OF ANY CHANGE IN RETURN ON NET WORTH
Details of change in Return on Net Worth is given in the Note No.43 of the Financial
Statements.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER
OF PERMANENT EMPLOYEES
Human Resources
Employees are vital and most valuable assets. The Company has a favourable work
environment that encourages innovation and motivation. The Management continues to invest
in people through various Learning & Development initiatives and believes in nurturing
leaders among them as far as possible and provide opportunities for growth across all
levels. The total number of permanent employees as on 31.3.2023 was 268.
Welfare / Social Activities:
The Company sponsors several team building, sports and social welfare activities to
derive internal team building. SWEES
EMPLOYEES WELFARE TRUST is a welfare trust with its main object of working towards the
welfare of its employees. The
Company continuously focuses on Corporate Social Responsibility (CSR) activities as
prescribed by the Companies Act, 2013.
CAUTIONARY STATEMENT
Certain statements in this Management Discussion and Analysis Report describing the
Company may be ‘Forward Looking Statements?€™ within the meaning of
applicable laws and regulations. Actual results could differ materially from those
expressed or implied. Important factors that could make a difference to the
Company?€™s operations include economic conditions affecting demand/supply and
price conditions in the domestic and overseas markets in which the company operates,
changes in the Government regulations, tax laws, statutes and other incidental factors.
For and on behalf of the Board of Directors
| Sd/- |
Sd/- |
| R. CHELLAPPAN |
A. BALAN |
| Managing Director |
Joint Managing Director |
Place: Chennai Date: 29th May 2023
+91-9892691696
