Kolkata-based manufacturer of solar cells and modules Websol Energy System has announced combined financial results for the fourth quarter (Q4) and the financial year 2021 (FY21).

The company reported a net profit of ₹678.3 million (~$9.3 million) for FY 2021 which included exceptional items of ₹553.1 million (~$7.6 million) considered in Q3 2020 as a result of write back (reduced credit balance claimed as income). In Q4 2020, the company also accounted for ₹13 million ($17,913) as exceptional income received during the insurance company as a claim against the company’s loss due to the Amphan flood in May. Without the two exceptional items in the year, the net profit of the company would be ₹112.2 million, a 172% increase from the ₹41.3 million ($568,302) logged in FY 2020.

The company posted ₹35.3 million (~$486,601) in net profit for the fourth quarter against a net loss of ₹50.7 million (~$698,529) in Q4 2020, an increase of 170% (including exceptional income of ₹13 million ($17,913)).

The company’s total income in the fiscal reduced by 24% with ₹1.58 billion (~$21.7 million) compared to ₹2.06 billion (~$28.34 million) in the preceding year. Compared to the previous quarter, income rose by roughly 127% to ₹477.1 million (~$6.5 million). In Q4 2020, the company registered an income of ₹210.2 million (~$2.8 million).

The company’s revenues from operations – ₹1.54 billion (~$21.06 million) – were derived from the sales of 158 MW of cells and 8 MW of solar modules in the FY 2021.

In the fourth quarter of 2021, Websol Energy Systems reported earnings before interest, taxes, depreciation, and amortization (EBIDTA) of ₹107.2 million (~$1.47 million), following up on a corresponding figure of ₹49.7 million (~$68,484) excluding exceptional items. A depreciation provision was made for ₹37.8 million (~$520,173).

The company reported an interest outflow of ₹20 million (~$275,224).

The company’s yearly profits and increase in EBIDTA are attributed to increased cell throughput, improved realizations, and resumption of the module line.

The company had reported a 21.3% growth in revenues during Q3FY21 over Q2FY21. The revenue growth was complemented by a 373.8% increase in EBIDTA over Q2FY21.

According to the statement, Websol has sold out all its solar cells for the coming months. The company is restructuring its existing 250 MW solar cell capacity towards higher cell sizes and looking at commissioning additional solar cell capacity.

The managing director of the company S.L. Agarwal said, “The company was able to widen cell manufacturing margins, moderate raw material costs as a percentage of revenues from 60.55% in the third quarter to 53.67% in the fourth quarter, strengthening overall competitiveness.”

Websol Energy Systems has been into the production of solar energy cells with a capacity of 1 MW in the mid-90s and went to increase its portfolio with a 250 MW solar cell and 250 MW module manufacturing. For FY 2021-22, the company is working towards producing 175 MW of solar cells and 135 MW of solar modules.

Agarwal further added, “During the current year, the company’s interest outflow will decline sharply on account of virtually no long-term debt on the books. Besides, the company commissioned its dormant 250 MW module manufacturing line in the last quarter. The accumulated loss of the previous years will provide a multi-year tax hedge. We will utilize this advantage to build a broad-based, competitive, and sustainable organization in the wake of the production-linked incentive program of the government that is intended to graduate India into a global hub for the manufacture of solar energy equipment.”

Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. More articles from Rahul Nair.