Doshi believes that this will not be restricted only to the module and in the coming days, we will see that more such things are coming for the entire value chain where the Waaree is also planning to expand in all these areas.
You did this fundraiser to support the capex, but you are not alone in that. A lot of conglomerates right from Tatas to Adanis have announced their capex in this sector. Do you anticipate a threat of a supply glut if not immediately, maybe three to five years out?
Hitesh Doshi: Of course, there is a huge demand which we had discussed in the last interview and this demand we also discussed right from 500 gigawatt of the present mission, as well as hydrogen, batteries, so all this we will need a huge supply chain. So, Waaree is going as per the plan, but it is not going to meet the entire requirement of the country. Apart from this, globally people are looking for India as a second supply chain. So, personally, I do not see there is going to be a glut or all that. This is the need of the hour and we will need this.What about the domestic market because that is currently being protected by ALMM and other import measures as well? Do you expect them to continue in the near term too?
Hitesh Doshi: Our honourable Prime Minister’s clear message is the Make in India and to make this in India not only the solar panel but all the products in the energy value chain, particularly when we talk about the green energy transitions. These products are going to be continued to be made in India with government support.
ALMM is one of the non-tariff barriers which is helping to promote Make in India. Just by bringing ALMM in for a short span, we have seen how the Indian module manufacturing capacity has increased and how our exports have also increased.
Personally I believe that this will not be restricted only to the module, in coming days we will see that more such things are coming for the entire value chain where the Waaree is also planning to expand in all these areas. The price difference when it comes, there are two issues here. One is the cost difference, one is the price difference. When the dumping is there, price difference goes out of the, I will say it is not on table, but the cost difference wise, India was not more than 2 cents in the past and today also our cost difference is not more than 2 cents compared to the other large global manufacturers globally. I am sure that with this continuous backward integration and increasing the volumes, capacities, we will cross over this bridge of 1.5 to 2 cents very shortly.
A large part of your order book is export related. How do you plan to insulate yourself from the increased trend of over protectionism which we have seen in a lot of large economies, plus there is that possibility of China dumping. With respect to all of this, how is the export market expected to pan out for you?
Hitesh Doshi: We as a company are expanding globally also. So, probably in this financial year we will see that our manufacturing in the United States will become operational. Already the equipment is in and they are under installation. This geographical or geopolitical risk looking at energy security and any countries who are looking for more and more energy securities will look into these options and see how Waaree can also go there and expand our activities. In India, definitely we are seeing the large opportunities and we are going ahead in that direction.
Just trying to put some numbers here. From the 80 crore PAT in FY22 to Rs 1,275 crore in FY24, the growth has been exponential. Now, with the additional capacities coming up, what is the sustainable revenue and PAT rate that we can expect?
Hitesh Doshi: We are growing from 13 gigawatt to 21 gigawatt in the modules. We are increasing the cell manufacturing capacity, 5.4 is going to be operational now. And apart from that we will go for the additional 6 gigawatt from this IPO whatever the fund we have raised. The majority of this we are going to use for the 6 gigawatt of additional cells, wafers, and ingots. So, if you look at the two things of the company, one way we are increasing our top line by increasing our capacities, another side we are increasing our backward integration.
Apart from our geographical expansion and the product range expansion, this will definitely help the organisation to grow in terms of the top lines and bottom lines in the coming days. Giving the exact number will be difficult at this moment, but definitely the intentions, the plans all these in terms of growing both the things.You talked about backward integration. How can that help your margins? In the sense that right now your margin is 13% to 14%, while the peers are 16-17% there about, so is that something which is possible? And is it fair to expect a Rs 2,000-2,500 crore PAT by FY26 or FY27?
Hitesh Doshi: Definitely, there will be growth in the PAT as well as the top lines. But how difficult will it be to forecast at this moment? When we are buying the product from the outside and when there is a demand for Make in India cells, that will definitely help to the bottom line.
You have had a very strong listing, and that nearly doubled compared to the issue price. Do you have any regret that you could have priced this perhaps a little better?
Hitesh Doshi: I think this is the happiest moment. If you look at the real numbers, there are 97 lakhs applications. This shows the confidence on green energy, on our honourable Prime Minister’s vision, as well as the trust and confidence of the Waaree.
Such a large number of the applicants definitely brings a lot of responsibility on us. But there is no regret. This is the happiest moment given how the entire country is believing in this sector and how they are believing in Waaree. So, there is no regret at all. This is the happiest moment for the entire Waaree family members.