Solarworld Energy Solutions · tone and specificity signals across the available quarters.
Language signals
BESS will play a big part in all future orders that come to us. We believe that solar market might be a little slow in the coming year because of the grid-related issues that the government has been highlighting but overall the Indian solar story is still strong and very promising.
About 60% of the projects that were bid out in the last six months will not be executable until the price comes down to about $40. So that price adjustment has happened in the market already and at those very low pricing people will be able to execute unless prices in China fall significantly. At current prices, they are not possible.
The module line was showing a loss of about 11 crores that was purely on depreciation and interest cost on that line because the line was not fully functional. Over the next 12 months you will see a lot of improvement on that line. A typical line on a gigawatt scale should give you a profit of somewhere about 70 to 80 crore.
I would say somewhere between 8 to 11% is where we should lie in terms of overall margin. Q4 for all the companies has been very very challenging. All the raw material prices have significantly increased in the last quarter either owing to the war that is currently going on which has created a lot of headwinds.
From a competitive perspective we are very well positioned as India's only EPC company that is backward integrated into manufacturing. We are targeting a 60-40 BESS to solar EPC revenue mix which will allow us to partner meaningfully in the country's rapidly expanding storage ecosystem while building a more diversified and resilient revenue base.
Q1 has been difficult for everybody because of the elevated prices. If these prices reduce we hope to improve our margins as well otherwise we would hope to sustain our margins internally. We expect to grow by around 40–45% this year as well.