Websol Energy Systems posts 1,542% jump in net profit for FY 2020-21

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Websol Energy Systems, a Kolkata-based solar cell and module manufacturer, has reported an INR 67.83-crore net profit for FY 2020-21, 1,542% up from INR 4.13 crore in the previous fiscal year. Revenues from operations contracted to INR 153.60 crore from INR 195.54 crore in FY 2019-20, but the company was able to significantly moderate raw material and other costs.

The manufacturer, which has a 250 MW solar cell and 250 MW module capacity, earned INR 153.6-crore revenue from production and sales of 158 MW solar cells and 8 MW modules. 

Websol expects to further improve the financial performance for the year 2021-22 with increased capacity utilization. The company is sold out for its complete manufacture of solar cells for the coming months and is working towards producing 175 MW of solar cells and 135 MW of modules for FY 2021-22. 

“The improved performance of the company during the fourth quarter and the full year is a reflection of the sharp turnaround in operating realities of the renewable energy sector in India,” said SL Agarwal, managing director. “This improvement has been driven principally by a forward-looking government policy.”

“The company was able to widen cell manufacturing margins and moderate raw material costs as a percentage of revenues from 60.55% in the third quarter to 53.67% in the fourth quarter, strengthening its overall competitiveness.” 

Websol Energy Systems expects to capitalize on the solar sector’s growth prospects. India is probably the only country within the G-20 to have met its target in renewable energy accretion. The country has targeted to commission 175 GW of renewable energy capacity creation by 2022 and 450 GW by 2030. 

The trickle-down of this reality is being reflected in the prospects of Websol Energy Systems. The company is restructuring its existing 250 MW solar cell capacity to produce larger cell sizes and contemplating the commissioning of additional solar cell capacity incorporating cutting-edge technology in 18 months. 

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