Did KPI Green Energy's Expenses Surge Over 88% While Q4 Profit Soared 91%?
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Synopsis
KPI Green Energy has reported an impressive 91% jump in its Q4 FY25 profits, but rising expenses paint a complex picture. Discover how this Gujarat-based renewable energy company balances profitability with growing costs in our detailed analysis.
Key Takeaways
- 91% increase in net profit for Q4 FY25.
- Total expenses surged to Rs 439.01 crore.
- Cost of materials consumed doubled to Rs 317.8 crore.
- Employee benefits expenses rose by 236.65%.
- Revenue increased by 76.4% YoY.
Mumbai, May 14 (NationPress) Gujarat-based KPI Green Energy announced a remarkable 91% increase in its consolidated net profit for the fourth quarter (Q4) of FY25, reaching Rs 46.01 crore, compared to Rs 24.03 crore during the same period last fiscal. However, the company also faced a significant rise in expenses.
This substantial profit growth occurred alongside a notable increase in total expenses for Q4, which reached Rs 439.01 crore, reflecting an 88.74% rise from Rs 232.6 crore in the corresponding quarter of FY24.
A key factor in this expense surge was the cost of materials consumed, which more than doubled to Rs 317.8 crore from Rs 142.59 crore, marking a YoY increase of 122.94%.
Moreover, employee benefit expenses escalated significantly, rising by 236.65% to Rs 15.87 crore in Q4, up from Rs 4.72 crore a year earlier.
Additional expenses also rose, totaling Rs 73.87 crore compared to Rs 48.27 crore in the same quarter last year, which translates to a 53.02% increase.
Despite these financial pressures, the company's revenue surged by 76.4% YoY to Rs 432.28 crore in Q4, up from Rs 245.12 crore in the same period last fiscal.
Operating performance showed strength as well, with EBITDA doubling to Rs 68.27 crore from Rs 33.29 crore, showcasing a growth of 105%.
The EBITDA margin improved to 15.8% from 13.6% in the year-ago quarter, indicating enhanced cost efficiency and profitability.
Following the announcement, shares of KPI Green Energy were trading higher at Rs 435.75 on Tuesday, up by Rs 20.85 or 5.03% on the National Stock Exchange (NSE).
KPI Green Energy Limited is a prominent renewable energy company located in Surat, Gujarat, specializing in solar and hybrid power generation.
The company is engaged in the development, construction, ownership, and operation of solar power facilities across India.
Point of View
I observe KPI Green Energy's latest financial results with keen interest. While the 91% profit jump is commendable, the substantial rise in expenses signals potential challenges ahead. It’s crucial for us to remain vigilant about how these factors will influence the company's future and the broader renewable energy market.
NationPress
16/06/2025
Frequently Asked Questions
What was the net profit reported by KPI Green Energy for Q4 FY25?
KPI Green Energy reported a consolidated net profit of Rs 46.01 crore for Q4 FY25, marking a 91% increase from the previous year.
How much did expenses increase for KPI Green Energy in Q4 FY25?
The total expenses for KPI Green Energy rose to Rs 439.01 crore in Q4 FY25, which is an increase of 88.74% compared to the same quarter last year.
What contributed to the expense increase for KPI Green Energy?
The significant rise in expenses was primarily driven by the cost of materials consumed and employee benefit expenses, which both saw substantial increases.
How did KPI Green Energy's revenue perform in Q4 FY25?
KPI Green Energy's revenue surged by 76.4% YoY, reaching Rs 432.28 crore in Q4 FY25.
Where is KPI Green Energy located?
KPI Green Energy is based in Surat, Gujarat, India, and focuses on solar and hybrid power generation.
