Synopsis
SolarSquare reported a significant rise in losses, increasing 2.3 times to Rs 69 crore in FY24, primarily due to expenses surging by over 65%. Despite the challenges, operating revenue grew by 63.5% year-on-year.Key Takeaways
- Losses increased by 2.3 times to Rs 69 crore.
- Expenses rose by 65.94% to Rs 229 crore.
- Material costs increased by over 52%.
- Operating revenue surged by 63.5% YoY.
- Company holds Rs 120.5 crore in current assets.
New Delhi, Feb 23 (NationPress) The rooftop solar solutions firm SolarSquare experienced a remarkable increase in its losses, escalating 2.3 times to Rs 69 crore in the recent fiscal year (FY24).
The revenue derived from services also saw a decline of 33.33 percent, dropping to Rs 2 crore, as per the company’s financial report.
A primary factor contributing to the rising losses is SolarSquare's expenses, which surged by 65.94 percent to Rs 229 crore in FY24.
Costs related to materials, which constituted the largest portion of expenditures, increased by 52.27 percent to Rs 134 crore. Employee expenses more than doubled to Rs 37 crore, while finance and rental expenses reached Rs 8 crore.
Additionally, other operational costs contributed an extra Rs 50 crore to the overall spending, according to its financial disclosures.
The company’s financial outcomes were significantly affected by its high-cost structure.
Its Return on Capital Employed (ROCE) was recorded at (-)112.85 percent, with an EBITDA margin of (-)35.96 percent.
Reports indicate that SolarSquare expended Rs 1.31 to earn each rupee.
Nonetheless, the firm’s operating revenue soared by 63.5 percent year-on-year (YoY), amounting to Rs 175 crore in FY24, compared to Rs 107 crore in FY23.
The majority of its revenue stemmed from product sales, which increased by 66.35 percent to Rs 173 crore.
SolarSquare specializes in designing and installing rooftop solar systems for households, housing societies, and commercial entities, witnessing its total income rise to Rs 178 crore from Rs 108 crore in FY23.
The company also earned Rs 3 crore from interest on deposits and profits from current investments.
Currently, it holds Rs 120.5 crore in current assets, including Rs 60 crore in cash and bank balances.
As reported, it has secured $56 million from investors such as Elevation Capital, Lowercarbon Capital, and Good Capital.
Numerous reports suggest that while the company has established itself as a frontrunner in the home solar market, it has yet to optimally utilize its financial resources to scale effectively.
