Premier Energies Q2 Results- Profits Up 72% As Expansion The Next Trigger

Hyderabad based solar manufacturer Premier Energies has reported a 20% jump in revenues for Q2 over the same period last year, even as a 72% jump in profits continued to reflect strong margins for the firm.  

Premier Energies Q2 Highlights

With the solar sector in a sweet spot currently with high domestic demand and lowChinese competition due to duties and other non-tariff barriers, solar manufacturers continue to make the most of the opportunity in the repidly evolving sector. For Premier Energies, maintaining momentum has meant, like many of its peers, an expansion into related areas, besides overall capacity expansion.  the firm has plans to expand bakward integrartion all the way to ingots and wafers eventually.  

Andhra Expansion Plan

Premier Energies has announced plans to expand its Solar PV Topcon Cell manufacturing facility located in Naidupeta, Andhra Pradeshto 7 GW, with an additional investment of ₹502.00 crore. Plans are moving fast, as seen in a formal announcement by a key vendor Inox Products that has already announced the order to suppky key gases for the cell manufacturing process at the site. 

Post results, the firm's share price corrected slightly by 1% at the NSE to about Rs 1080, indicating market perception of the firm having met expectaationsl considering elevated valuations. 

The firm has been on an acquisition spree, adding transformers to its portfolio, besides inverters as well. The move reflects what the other large listed player on the manufactiring side, Waaree Energies has also been doing, as firms try to capture as much of the solar booms profits as possible by straddling multiple segments.  The one thing Premier has stayed out of so far is committing significant investments to the US market, and avoiding IPP projects altogether, while not foregoing exports. For now, both of these have worked in the company's favour.