Vikram Solar FY24 Financial Highlights

• Revenue Growth: 20% YoY increase, with product sales up 27%, driven by n-TOPCon technology. Export sales contributed 61.58% of total revenue, while EPC services declined by 58%.
• Profitability: Operating Profit Margin (OPM) reached 16%, and Net Profit Margin (NPM) increased to 3.2%. Gross margins improved by 1,000 basis points YoY.
• Asset & Debt Management: PPE grew at a 68% CAGR; debt-to-equity ratio at 1.8. Cash conversion cycle extended to 3.6 months.
• Manufacturing Expansion: Current capacity at 3.5 GW, targeting 5 GW by FY25 and 10.5 GW by FY26. New facility and advanced technologies in the pipeline.

IPO & Investment Opportunity:

• Vikram Solar filed its DRHP with SEBI on September 30, 2024, for an IPO including fresh shares worth ₹1,500 crore and an OFS of up to 17.45 million equity shares by the promoter group. A ₹300 crore pre-IPO placement is also possible.
• The company plans to use ₹793.36 crore for a new 3 GW solar cell and module facility via VSL Green Power, and ₹602.95 crore to expand existing module capacity from 3 GW to 6 GW.
• The order book stands at 8,214.63 MW, with a target of 10.5 GW production capacity by FY26 and 15.5 GW by FY27.
• Vikram Solar has signed a retainer letter with the U.S. International Development Finance Corporation (DFC) for $200 million in funding for its Tamil Nadu plant.

The company raised ~₹720 crore through a private placement in Q1 FY25 at a valuation of ~₹3,150 crore and may raise ₹300 crore more before the IPO, making forward EPS difficult to estimate. However, with strong sectoral tailwinds and ongoing capacity expansion, Vikram Solar’s legacy EPS is expected to experience supernormal growth in the near term, making it an attractive investment opportunity.