Waaree RTL Sees Its O&M Biz Growing 2-3 Times From Next Year

Waaree RTL Aims To Expand To Middle East, African Countries

Buoyed by the expertise and legacy of the Waaree Group, the EPC arm of the group Waaree Renewable Technologies Limited (RTL) now sees expansion of its Operations and Maintenance (O&M) business from next year onwards. The top management of the company in its latest investors call talked about the jump of its O&M business by up to 2 to 3 times.

“So, O&M is at 587 megawatts. Also, what happens is that when we undertake EPC clients, they give us, the majority of them, not all of them, give us between three to five years of O&M. So, mostly once the projects get completed next year we will see an uptick in O&M as well. And the company also keeps actively bidding for O&M customers outside. So, we are hopeful that this should also see a 2x to 3x growth next year onwards,” Dilip Panjwani, Chief Financial Officer (CFO) of Waaree Renewable said.

Panjwani also talked about the focus of the EPC company on rooftop projects and even on smaller MW-scale projects. For this, the firm said it has also floated a new division within the firm. “So, technically, typically we do not go below 600-kilowatt level. I actually mentioned our focus is 1 megawatts onwards. I also mentioned that we have internally reorganized a division which will focus between 1 megawatts to 50 megawatts that we have recently organized, so it will take a little bit of quarters or a couple of quarters’ time to see fruition,” Panjwani told investors in the Q2 earnings call. 

The company said that it has now 1.7 GW of unexecuted orders which it will be focussing on in the H2 to complete. The firm expressed optimism to complete around 1.2 GW of orders. It said that it has around 80 percent of its orders from private players while around 20 percent of its orders are related to PSUs or the government.

The firm has witnessed some margin contraction this financial year, compared to the 20% plus margins it had until last year. The management expressed optimism about sustaining margins in double digits on a much larger volume of work.