Company Update : ACME Solar Holdings Ltd By Motilal Oswal Financial Services Ltd
Robust 4Q as new capacity starts to contribute
* In 4QFY25, ACME’s consol. revenue was 5% above our est. at INR4.9b attributable to higher than estimated generation numbers and higher CUFs.
* EBITDA came in at INR4.4b (+117% YoY, +42% QoQ) beating our est. by 10%, with an EBITDA margin of 89% supported by favourable operating leverage and operational efficiency.
* Adj PAT was INR1.3b (vs. a loss of INR1.6b in 4QFY24). An exceptional loss of INR141m (vs INR6,962m gain in 4QFY24m from the sale of 369MW assets and associated tax) included ancillary cost of INR180.4m incurred on prepayment of borrowings by subsidiaries, and contingent consideration received related to investments disposed of in the earlier year, amounting to INR39.6m.
* FY25 revenue came in at INR14b (+6.5% YoY), driven by a 1,200MW capacity addition in 4QFY25, but was partially offset by the divestment of 369MW of assets. EBITDA reported was INR12.3/3.6b (+13% YoY). However, adjusted for 369MW monetized assets, revenue increased 32.3% YoY, and EBITDA was up 43% YoY).
* Net debt stood at INR75b. The net debt-to-net worth ratio reduced to 1.7x from 2.6x in FY24.
Operational Highlights:
* Generation stood at 4,013MUs in FY25 (+55% YoY).
* Operational capacity reached 2,705MW, reflecting a 102% rise over FY24. ? The company recorded a CUF of 25.6% (23.6% in FY24).
* Commissioned 1,200MW of solar projects during the year. Another 450MW of projects are in advanced stages of construction (Total UC portfolio of 4,265MW).
* The company is targeting 10GW of contracted capacity by FY30.
* It secured 1,900MW of new projects during the year (1,000MW FDRE, 600MW Solar, and 300MW Hybrid), taking the total portfolio to 6,970MW. Signed PPAs for 1,890MW during the year.
* Refinanced INR77b of debt during the year at an average rate of 8.8% p.a., resulting in a 75bps reduction in borrowing costs. Debt arrangements secured for 1,700MW of UC projects, totaling INR165b.
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