Ganesh Green Bharat Limited — Investor Meet, 19-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Ganesh Green Bharat Limited delivered robust financial results for H1 FY25, achieving total income of INR 130 crore, reflecting a remarkable 136% year-on-year growth. The EBITDA stood at INR 23 crore, with a margin of 16.3%, a decline attributed to a higher share of lower-margin solar module sales versus EPC contracts. The profit after tax (PAT) surged by 95%, reaching INR 13 crore, resulting in a PAT margin of 9.5%. Key metrics showed an improvement in return on equity (ROE) and return on capital employed (ROCE) at 21% and 19%, respectively, alongside a favorable debt-to-equity ratio of 0.70x.

**Future Outlook and Growth Drivers:** Management remains positive, projecting consistent growth with a focus on expanding the solar module manufacturing capacity. Commercial production of 750 MW is slated to commence by mid-December. They aim for continued revenue momentum driven by government tenders, including a substantial INR 16,000 crore opportunity in collaboration with KSBV for solar pumps and projects in various Indian states.

**Order Book and Operational Updates:** The current order book stands at INR 295 crore, slightly down from previous guidance. Management anticipates order influx post-rainy season, with expectations to secure INR 500-650 crore from a tender worth INR 2,500 crore in the coming months.

**Analyst Q&A Insights:** Management clarified that while EBITDA margins may fluctuate between 16%-20%, they expect improvements as EPC projects commence. Analysts raised concerns about smaller order sizes, prompting management to emphasize optimism about orders ramping up soon as government activity resumes. On the capital allocation front, plans for future capacity enhancements remain cautious, prioritizing internal funding before seeking external capital when necessary.

**Market or Regulatory Updates:** The solar sector is anticipated to grow, driven by substantial demand – the Indian government aims for 75 GW of solar capacity. Management highlights strategic advantages from favorable regulatory conditions, including anti-dumping duties on imports.

**Strategic Focus Areas:** The company is focused on backward integration with plans to enter cell manufacturing, framing this under the broader strategy to stabilize module supply amid market disruptions. This aligns with evolving needs and regulatory standards pushing for domestic content.

**Investor Insight:** Ganesh Green Bharat's significant revenue growth, alongside its strategic initiatives and improvements in operational efficiency position it well for future expansion. The anticipated order influx and margins indicate a favorable investment outlook, meriting interest from retail investors.