KPI Green Q2 Results- Revenues Up 67% YoY, PAT Up 99%

Gujarat based KPI Green Energy, part of the KP Group with interests across the energy chain, has declared results for the September quarter , Q2 FY25. As expected revenues are up sharply over the corresponding quarter last year for the EPC firm, at Rs 361 crores versus Rs 216 crores last year.  Thanks to the heavy monsoon this year, quarter on quarter growth could not be sustained , with just a 3% increase over the previous quarter, when the firm had done Rs 349.8 crores in revenues.

Profit after tax reflected the sharp revenue increase, coming in at Rs 69.8 crores for the quarter, versus Rs 34.7 in the same quarter last year. In the previous quarter (Q1), profits had climbed to Rs  66.11 crores.

That means H1 revenues have climbed to Rs 711 crores, versus Rs 406 crores last year, a 75% jump. The relative ‘moderation’ in growth can be ascribed both to the monsoons this year and the higher base effect now, as these firms gird up to tackle the high order books they still have in hand. KPI Green currently has 2.41 GW of orders in hand, thanks to its push beyond the captive segment into IPP segment where it has been successful till date. In fact, its IPP order book has exceeded the captive capacity for the first time at 1261 MW versus 1148 MW  in captive.

With a large land bank of over 3000 acres, KPI Green has been focusing of late in diversifying its geographical coverage as well as client base  to ensure sustainable growth. Until recently the firm which had a stranglehold in the Bharuch area in Gujarat besides other plants in the state. It continues to be a key player in the state winning some large tenders recently, even as it has sought projects in other states, notably, Maharashtra, Uttarakhand and others.

During H1 this year, the firm also pushed into the Hybrid  EPC model with a combination of solar and wind, and has installed 81 MW between its IPP and CPP models, with a further 1.1 GW of orders to be executed in hand.

Like most other solar EPCs, the strong order book provides visibility for a CAGR of 30% and over for the next two years, with further orders to be added as they are won. What the markets will really be watching out for is its performance outside Gujarat, to vindicate the faith of the marquee investors it has attracted in the past year.