Table of content
ACME Solar Holdings Introduction
ACME Solar Holdings Limited is an Indian renewable energy company established in June 2015. The company focuses on developing, constructing, owning, operating, and maintaining large-scale renewable energy projects, including solar, wind, hybrid, and firm and dispatchable renewable energy (FDRE) projects
Also read Aware The Dark Side of Sahaj Solar’s IPO
Brief About ACME Solar Holdings
History
Company was originally incorporated as “ACME Solar Holdings Private Limited” at Haryana, India, as a private limited company under the Companies Act, 2013, pursuant to a certificate of incorporation dated June 3, 2015, issued by the Registrar of Companies, Delhi and Haryana at New Delhi. Upon the conversion of our Company into a public limited company, pursuant to a board resolution dated May 1, 2017, and a shareholders’ resolution dated May 2, 2017, the name of our Company was changed to “ACME Solar Holdings Limited”, and a fresh certificate of incorporation dated May 12, 2017, was issued by the RoC. Pursuant to a board resolution dated January 21, 2020, and a shareholders’ resolution dated January 24, 2020, our Company was converted into a private limited company and consequently, the name of our Company was changed to “ACME Solar Holdings Private Limited”, and a fresh certificate of incorporated dated July 1, 2020, was issued by the Registrar of Companies, New Delhi. Due to administrative and commercial considerations our Company was converted from a public limited company to a private limited company on July 1, 2020.
Summary of the business
ACME Solar Holdings is a renewable energy company in India with a portfolio of solar, wind, hybrid and firm and dispatchable renewable energy (“FDRE”) projects. ACME Solar Holdings develop, build, own, operate and maintain utility scale renewable energy projects (through our in-house engineering, procurement and construction (“EPC”) division and operation and maintenance team), and generate revenue through the sale of electricity to various off-takers including central and state government-backed entities.
Verticals
- Sale of electricity
- Engineering, procurement and construction services
- Project management services
Customer concentration
| Customers | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
| Top 1 | 22.36% | 19.88% | 17.39% |
| Top 3 | 53.84% | 51.67% | 44.26% |
| Top 5 | 74.98% | 70.73% | 62.28% |
| Top 10 | 89.98% | 87.48% | 81.11% |
Supplier concentration
| Suppliers | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
| Top 1 | 79.37% | 69.84% | 69.95% |
| Top 3 | 87.65% | 89.34% | 87.65% |
| Top 5 | 91.89% | 93.09% | 89.49% |
| Top 10 | 96.93% | 96% | 94.11% |
Revenue breakup
Product wise break-up
| Particulars | Three months ended June 30, 2024 | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
| Sale of goods and services | ||||
| – Sale of electricity | 3,096.40 | 13,188.54 | 12,701.50 | 13,744.88 |
| – Engineering, procurement and construction services | – | – | 32.47 | 938.19 |
| – Project management services | – | – | 210 | 191 |
| Other Operating Revenue | ||||
| – Other Operating Revenue | – | 3.96 | 5.07 | 4.95 |
Revenue contribution from Geography presence
(in ₹ million)
| State | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 | |||
| Revenue | % of revenue | Revenue | % of revenue | Revenue | % of revenue | |
| Andhra Pradesh | 1,994.78 | 15.12 | 1,989.05 | 15.36 | 1,901.77 | 12.78 |
| Rajasthan | 3,719.98 | 28.2 | 2,499.85 | 19.31 | 2,215.27 | 14.89 |
| Telangana | 2,625.84 | 19.9 | 2,598.06 | 20.06 | 4,146.85 | 27.87 |
| Other State | 4852.376906 | 36.78 | 5,861.99 | 45.27 | 6,615.28 | 44.46 |
Industry Outlook
Overview of renewable energy sector
Renewable sources are a clean source of energy as they do not burn like fossil fuels, preventing the release of pollutants into the air. Increasing use of RE would help avoid carbon emissions, and thereby, restrict global warming. Further, the wide availability of these resources makes them less susceptible to depletion unlike conventional sources of energy. While there are multiple renewable sources that can be utilised, including solar, wind, small hydro, biomass, and bagasse remain key sources.
Renewable energy installations (incl. large hydro) have increased fivefold to approximately 200 GW as of August 2024, as compared with approximately 63 GW as of March 2012 (source: MNRE), led by various central and state-level incentives. As of March-2024, installed grid connected RE generation capacity (incl. large hydro) in India constituted approximately 44% of the total installed generation base in India. This growth has been led by solar power, which has grown to approximately 89 GW from merely approximately 0.09 GW over the discussed time period (i.e. from March 2012).
Solar sector
In the renewable energy basket (including large hydro) as of August 2024, solar energy accounted for a share of approximately 44%. Growth in the solar power sector over the last five years has been robust. As much as approximately 70 GW capacity was added in the segment over Fiscals 2018-24, registering a CAGR of approximately 24.8%, although on a low base. Despite the second wave of COVID-19 infections, Fiscal 2022 witnessed solar capacity additions of approximately 14 GW. In a relief to developers, the MNRE provided total extension of seven-and-a-half months for the projects affected by the first and second waves of pandemic. This is estimated to have delayed commissioning in Fiscal 2022, leading to a spillover into Fiscals 2023 and 2024. In Fiscal 2023, solar capacity additions stood at approximately 13 GW, with approximately 2.2 GW coming from rooftop solar projects. Similarly, in Fiscal 2024, solar capacity additions stood at approximately 15 GW, with approximately 3 GW coming from grid connected rooftop solar projects. The first five months of Fiscal 2025 saw a capacity addition of approximately 7.6 GW.
The National Institute of Solar Energy estimated the country’s solar potential at 748 GW, assuming solar PV modules cover 3% of the geographical surface. India is a perfect location for solar energy because of its location. It has 300 days of sunshine each year, with daily peak electricity use being in the evenings and a seasonal peak in the summer.
The daily average Global Horizontal Irradiance (“GHI”) in India is around 5 kWh/m2 in north-eastern and hilly areas to about 7 kWh/m2 in western region and cold desert areas. The annual GHI varies from 1600 to 2200 kWh/m2. States like Gujarat, Rajasthan, Madhya Pradesh, Andhra Pradesh, Karnataka, Tamil Nadu offers more solar irradiance as compared to other parts of India which makes them desirable for installing solar projects.
Further, during the summer months India experiences southwest monsoon winds and northeast monsoons during the winters. The Indian summer monsoon typically lasts from June-September in large areas of western and central India, whereas certain regions in South India gets rain during winter months due to northeast monsoon. Consequently, the solar projects located in Southern part of India may get affected during October-December. Additionally, unseasonal rainfall also impacts solar generation adversely.
State wise solar potential & wind potential
Growth drivers for solar sector in India
State wise solar park capacity (GW) as of June 2024
| Name of the State in which Solar Parks/UMREPPs are located | Total Capacity of Solar Park/ UMREPP(MW) | Capacity Under Award / Tendering(MW) | Capacity Awarded (MW) | Capacity Under construction (MW) | Capacity Commissioned (MW) |
| Andhra Pradesh | 4,200 | 1,150 | 3,050 | 0 | 3,050 |
| Chhattisgarh | 100 | 0 | 100 | 0 | 100 |
| Gujarat | 12,150 | 2,770 | 9,380 | 8,405 | 975 |
| Himachal Pradesh | 53 | 53 | 0 | 0 | 0 |
| Jharkhand | 1,089 | 859 | 230 | 230 | 0 |
| Karnataka | 2,500 | 500 | 2,000 | 0 | 2,000 |
| Kerala | 155 | 50 | 105 | 5 | 100 |
| Madhya Pradesh | 4,780 | 2,172 | 2,608 | 958 | 1,650 |
| Maharashtra | 1,100 | 850 | 250 | 250 | 0 |
| Mizoram | 20 | 0 | 20 | 0 | 20 |
| Odisha | 340 | 300 | 40 | 40 | 0 |
| Rajasthan | 9,568 | 5,292 | 4,276 | 1,185 | 3,091 |
| Uttar Pradesh | 3,730 | 3,300 | 430 | 0 | 430 |
| Total | 39,785 | 17,296 | 22,489 | 11,073 | 11,416 |
New business models warrant higher tariffs
With a large quantum of the pipeline already in place for solar/ wind only projects, nodal authorities are now resorting to issue tenders, which improve the quality of power supplied to off-takers. Some key changes were made to tender structures with respect to the generation profile available from RE plant and the ability to match demand requirements of the off-taker.
Three new tender structures have been issued so far to solve the above aspects – assured peak power supply (“PPS”), RTC, and the relatively newer FDRE. A key feature across these tenders is the increase in the quantum of generation, which was required to be supplied and the PPS tender for stipulating the power to be provided during peak hours. The PPS tender also mandated the use of storage, as that would be essential to supply power during peak hours. The government agencies have released FDRE tenders of over 14 GW in Fiscal 2024 and the first quarter of Fiscal 2025 cumulatively.
Wind-Solar Hybrid Projects: In May 2018, the MoP issued the Wind-Solar Hybrid policy with an objective to provide a framework for promotion of large grid connected wind-solar PV hybrid system for optimal and efficient utilization of transmission infrastructure and land, reducing the variability in renewable power generation and achieving better grid stability. The Policy also aimed to encourage new technologies, methods and way-outs involving combined operation of wind and solar PV plants. Hybrid projects typically provide higher CUF than standalone solar or wind projects. This is due to the fact that the wind projects operate optimally during morning and night and thus complement solar projects which peak during daytime
As per the revised bidding guidelines, the rated power capacity of one resource (wind or solar) in such projects should be at least 33% of the total contracted capacity. The guidelines also allowed the setting up of the solar and wind projects at the same or different locations. To meet the energy obligations under the power purchase agreements, developers generally install higher renewable energy capacity than the contracted capacity under the Hybrid Scheme.
Firm and dispatchable renewable energy projects: In June 2023, the MoP issues guidelines for procurement of firm and dispatchable power from grid connected renewable energy projects with energy storage systems. The guidelines explained the term ‘firm and dispatchable power’ as the power profile configuration that is defined in the request for selection that is sought to be met by RE power sources and will include configurations like assured peak power, Round-the-Clock RE with firm delivery of power at rated capacity at any hour of the day as per demand or load following power delivery as specified by DISCOM, RE projects with firm delivery of power for fixed hours of requirement by DISCOMs etc.
The guidelines also broadened the renewable energy to include solar power generating systems, wind power generating systems, wind solar hybrid; or any other renewable energy resource based generating system or a combination thereof, with energy storage system. Energy from solar and wind projects is intermittent and infirm in nature resulting in lower capacity utilization. However, FDRE addresses these challenges by providing following solutions.
- Firm power supply as per demand given by utilities; and
- Higher capacity utilization factor
Under FDRE, the project developer is required to supply RE power in a Firm and Dispatchable manner, matching the demand profile(s) provided by the Buying Entity. To provide firm power, developers are required to install mandatory energy storage system (either battery energy storage system or pumped hydro storage system) which are charged through renewable energy and discharged as per power requirement of buying entities. Further, To meet the energy obligations under the power purchase agreements developers generally install higher renewable energy capacity than the contracted capacity.
Modelling the above three tender structures with assumptions, coupled with industry interactions, we believe that the higher generation quantum mandated by these newer tenders could either be met using storage components or scaling up the plant capacity, i.e., setting up the plant of capacity larger than its rated capacity.
This has resulted in the expected tariff ranges required to maintain the equity IRRs of 12% to 14%, which are currently seen in regular tenders, to be higher than the norm of ₹ 2.5 to ₹ 2.6 per unit, approaching the range of ₹ 3 to ₹ 5 per unit. This increase will mainly be driven by higher capital and operating costs resulting from either the inclusion of a storage element or the need for higher capacity. Some moderation was observed only in the RTC tender, where the stipulated escalation in tariff will lead to higher tariffs.
Outlook on domestic Solar module manufacturing capacity additions
The nameplate module manufacturing capacity in India is expected to grow 50% to 55% in Fiscal 2025 on year to reach 84 to 88 GW from 63 GW in Fiscal 2024. The increased technological progressive module capacity (500 Wp and above) will provide comfort to the increasing average solar demand of 38 to 42 GW per annum till Fiscal 2029. Further, capacity across the supply chain is expected to witness commissioning from Fiscal 2025 to meet PLI scheme timelines. Nearly 18 to 22 GW of cells, 2 to 5 GW of wafers are also expected to become operational in Fiscal 2025 reducing need for imports. Overall, the domestic manufacturing nameplate module capacity is expected to touch 125 GW by Fiscal 2029, with 25% being backward integrated till the polysilicon stage. Increased domestic module manufacturing capacity is expected to provide a boost to capacity additions, comfort in module prices, decline in import reliance and ease in supply related challenges. However, utilisation of the installed capacities will be a key monitorable.
Project developers such as ReNew, Avaada, Adani Green, ACME, AMP Energy etc. have entered into solar module manufacturing business and announced various plans for capacity addition. Modules being the most expensive component, such backward integration is expected to provide better cost control to project developers and manage the supply chain related issues with an all-year-round module supply.
The price of domestic make modules is marginally lower in Fiscal 2024 at U.S.$0.26 per watt-peak compared to U.S.$0.27 per watt-peak of international modules owing to steeper fall in cell prices. While the module prices are expected to fall 35 to 40% on year in Fiscal 2025, the prices in the fourth quarter of Fiscal 2024 of U.S.$0.20 per watt-peak and U.S.$0.21 per watt-peak of international and domestic modules, respectively, are believed to have bottomed out with limited room for discount left at manufacturing ends. The industry is expected to take cognizance of the situation and limit additions to avoid further bloodbath of prices. Nearly 42 GW of global ingot and wafer and 40 GW of polysilicon plants to be commissioned in Fiscal 2024 and 2025 have been postponed indefinitely. Further, approximately 20 GW of global cell manufacturing expected to commission in Fiscal 2024 to Fiscal 2025 has been cancelled. Additionally, MNRE has reinstated the applicability of ALMM. As a result, only ALMM enlisted manufacturers can supply cells and modules to government and government-assisted projects. Projects under open access and rooftop solar by private parties are also brought into the ambit of ALMM. Therefore, the fall in prices across the value chain is expected to be arrested in Fiscal 2025.
Global solar module prices have reached a historic low, standing at just U.S.$0.09 per watt-peak in June 2024, which is expected to stimulate growth in solar power capacity. Prices are expected to remain stable over the medium term due to supply glut and relatively weak demand internationally. In line with this trend domestic prices too fell to U.S.$0.14 per watt-peak maintaining a steady premium over landed cost of imported modules.
Review of wind sector in India
Review of wind capacity additions in India
India has a vast wind energy potential, estimated at 695.5 GW at 120 meters above ground level (“AGL”) as per estimates by the National Institute of Wind Energy.
India-Wind Energy Potential
India has the fourth largest installed wind power capacity in the world, with approximately 47 GW as of July 31, 2024. Wind power accounted for nearly 10.5% of India’s total installed utility power generation capacity. Wind power capacity is mainly spread across the southern, western, and northwestern states of India. Leading states in wind power installations include Tamil Nadu, Gujarat, Maharashtra, Rajasthan, and Karnataka. Over the last 7 to 8 years, the installed wind power capacity in India has grown at approximately 7% (“CAGR”).
High-wind-density zones to drive wind energy capacity additions
The top five states (Gujarat, Tamil Nadu, Karnataka, Rajasthan, Maharashtra) make up approximately 85% of the installed wind capacity (as of 31 August 2024), with some regions within these states accounting for most wind power projects. Since April 2021 (till August 2024), approximately 85% the new capacity additions have happened in 3 states – Gujarat, Tamil Nadu, and Karnataka.
Gujarat, with the highest installed wind capacity of 12,163 MW, sees concentration of projects in or near the Rann of Kutch region, apart from coastal sites and select locations of Jamnagar, Porbandar, Morbi and Bhavnagar. Similarly, for Tamil Nadu with an installed wind base of 10,930 MW, most projects are located in districts of Tirunelveli, Nilgiris, Erode, Tuticorin, Coimbatore and Tiruppur. Likewise, for Karnataka (6,554 MW), Chitradurga, Bellary, Davengere and Tumkur, for Rajasthan (5,196 MW), Barmer and Jaisalmer; and for Andhra Pradesh (4,097 MW), Ananthapur, Nellore and Kurnool are the key regions where projects are concentrated.
List of key players in ESS segment
| Key players | Achievements in ESS segment |
| Greenko | 900 MW project won under SECI tender for peak power supply 500 MW/3,000 MWh ESS capacity under NTPC tender 700 MW/5,600 MWh PHS capacity under PCKL tender Developing IRESP at Andhra Pradesh with 3 GW solar, 0.5 GW wind and 1.2 GW/10.8 GWh PHS |
| ReNew | 300 MW peak power supply project with a storage capacity of 75 MW/150 MWh 400 MW RTC project with storage capacity of 25 MW/100 MWh |
| JSW Energy | Won 500 MW/1,000 MWh BESS under SECI tender Won 300 MW/2,400 MWh PHS capacity under PCKL tender Plan to install 5 GW/40 GWh energy storage capacity by 2030 |
| NHPC | Scouting for over 20 GW of PHSPs in the States of Andhra Pradesh, Maharashtra and Odisha and have also signed MoU with the respective State departmentsSigned MoU with Gujarat Power Corporation for investment in Kuppa PHSP of 750 MW |
| Hero Future Energies | 10 MW/20 MWh BESS at Kerala |
| Tata Power | 10MW/10MWh BESS commissioned in Delhi 20MW/50MWh BESS project in Leh, Ladakh 100 MW Solar with 40MW/120 MWh BESS at Chhattisgarh |
| L&T | 20 MW solar with 8 MWh BESS at Andaman & Nicobar |
| Mahindra Susten | 6MW Solar with 6MW/19MWh BESS at Gujarat |
Management of ACME Solar Holdings
Promoters & Board of Directors
- The Promoters of Company are Mamta Upadhyay, Manoj Kumar Upadhyay, ACME Cleantech Solutions Private Limited, MKU Holdings Private Limited and Upadhyay Family Trust.
Board of directors
| Name | Designation |
| Manoj Kumar Upadhyay | Chairman and Managing Director |
| Nikhil Dhingra | Whole-Time Director and Chief Executive Officer |
| Shashi Shekhar | Whole-Time Director and Vice Chairman |
| Atul Sabharwal | Independent Director |
| Sanjay Dhawan | Independent Director |
| Anuranjita Kumar | Independent Director |
Share Holding pattern
| Name of the Shareholder | % of Holding |
| Promoters | |
| ACME Cleantech | 100% |
Ipo details of ACME Solar Holdings
| Detail | Information |
|---|---|
| IPO Size | ₹2,900 crore |
| Price Band | ₹275 – ₹289 per share |
| Face Value | ₹2 per share |
| Issue Type | Book Built Issue |
| Open Date | November 6, 2024 |
| Close Date | November 8, 2024 |
| Lot Size | 51 shares |
| Minimum Investment | ₹14,145 |
| Listing Date | November 13, 2024 (Tentative) |
| Listing Exchanges | BSE and NSE |
Object of the issue
(in ₹ million)
| Particulars | Amount |
| Investment in our Subsidiaries for repayment/prepayment, in full or inpart, of certain outstanding borrowings availed by our Subsidiaries. | 17,950.00 |
| General corporate purposes | [●] |
Financial of ACME Solar Holdings
Key Performance Indicators
(₹ in million, except ratios)
| Particulars | three months ended June 30, 2024 | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
| Revenue from Operations | 3,096.40 | 13,192.50 | 12,949.04 | 14,879.02 |
| Total Revenue | 3,400.14 | 14,662.67 | 13,613.73 | 15,627.26 |
| EBITDA | 2,717.22 | 10,891.48 | 11,725.93 | 12,403.22 |
| EBITDA Margin | 87.75 | 82.56 | 90.55 | 83.36 |
| PAT | 13.89 | 6,977.81 | -31.74 | 620.1 |
| PAT Margins | 0.41 | 47.59 | -0.23 | 3.97 |
| Net debt/Equity | 3.89 | 2.66 | 3.85 | 3.56 |
| Cash RoE (% of Equity) | 2.93 | 38.83 | 25.34 | 31.87 |
Assets & Liabilities
(₹ in million)
| Particulars | 30 June 2024 | 31 March 2024 | 31 March 2023 | 31 March 2022 |
| Assets | ||||
| non current assets | 1,14,855.99 | 1,02,444.86 | 94,848.14 | 85,468.06 |
| current assets | 24,995.37 | 31,553.15 | 27,021.39 | 23,399.11 |
| Total assets | 1,39,851.36 | 1,33,998.01 | 1,21,869.53 | 1,08,867.17 |
| Equity and liabilities | ||||
| equity | 19,421.25 | 25,908.73 | 19,304.62 | 20,091.55 |
| non current liabilities | 1,08,223.97 | 93,768.49 | 92,868.88 | 76,314.62 |
| current liabilities | 12,206.14 | 14,320.79 | 9,696.03 | 12,461.00 |
| Total equity and liabilities | 1,39,851.36 | 1,33,998.01 | 1,21,869.53 | 1,08,867.17 |
Profit & Loss
(₹ in million, except %)
| Particulars | three months ended June 30, 2024 | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
| Revenue from Operations | 3,096.40 | 13,192.50 | 12,949.04 | 14,879.02 |
| Total Revenue | 3,400.14 | 14,662.67 | 13,613.73 | 15,627.26 |
| EBITDA | 2,717.22 | 10,891.48 | 11,725.93 | 12,403.22 |
| EBITDA Margin | 87.75 | 82.56 | 90.55 | 83.36 |
| PAT | 13.89$ | 6,977.81 | -31.74 | 620.1 |
| PAT Margins | 0.41 | 47.59 | -0.23 | 3.97 |
Capital structure
(₹ in million, except ratios)
| Particulars | June 30, 2024 |
| Borrowings | |
| Long term borrowings | 88,522.03 |
| Short term borrowings | 4,677.11 |
| Total Debt | 93.199.14 |
| Equity | |
| Equity Share capital | 1,044.42 |
| Other equity | 18,376.79 |
| Total equity | 19,421.21 |
| Debt to Equity Ratio | 4.80 |
SWOT ANALYSIS of ACME Solar Holdings
- Strengths
- Strong Project Portfolio: ACME Solar Holdings has a significant operational project capacity of 1,340 MW in solar power, with additional capacities under construction.
- Diversified Energy Sources: The company focuses on solar, wind, hybrid, and firm and dispatchable renewable energy (FDRE) projects, ensuring a diverse energy portfolio.
- Experienced Management Team: The company benefits from a seasoned management team with extensive experience in the renewable energy sector.
- Positive Financial Performance: ACME Solar Holdings has shown impressive financial growth, with revenue and net profit increasing significantly in recent years.
- Weaknesses
- High Debt Levels: The company has substantial outstanding borrowings, which can impact its financial stability.
- Limited International Presence: ACME Solar Holdings’ operations are primarily focused on India, limiting its global reach.
- Dependence on Government Policies: The renewable energy sector is heavily influenced by government policies and regulations, which can impact operations.
- Operational Risks: Managing large-scale renewable energy projects involves operational risks, including maintenance and technological challenges.
- Opportunities
- Expansion into New Markets: ACME Solar Holdings can explore opportunities to expand its services to other countries, tapping into new customer bases.
- Technological Advancements: Investing in new technologies can improve efficiency and competitiveness in the renewable energy market.
- Growth in Renewable Energy Sector: The global shift towards renewable energy presents significant growth opportunities for the company.
- Strategic Partnerships: Forming partnerships with other companies can help ACME Solar Holdings enhance its service offerings and market reach.
- Threats
- Economic Downturns: Economic instability can affect project funding and demand for renewable energy, impacting revenue.
- Regulatory Changes: Changes in environmental and safety regulations can increase compliance costs and affect operations.
- Intensifying Competition: The renewable energy sector is highly competitive, with many players offering similar services, which can impact market share and profitability.
- Market Volatility: Fluctuations in energy prices and market conditions can affect the company’s financial performance.
Peer Comparison of ACME Solar Holdings
Name of the Company Face Value (₹ Per Share) Closing price on October 3, 2024
(₹)Revenue from operations for Fiscal 2024 (in ₹
million)EPS (₹ per NAV (₹
per share)P/E(x) RoNW(%) ACME Solar Holdings 2 289 13,192.50 12.55 49.61 23.03 26.93 Peer Group Adani Green Energy
Limited10 1,808.55 92,200 6.21 85.86 291.7x 7.22 ReNew Energy Global
PLC10 484.491 81,948 9.94 332.16 48.8x 3.07 ACME Solar Holdings share price & Solar Stocks
Risks of ACME Solar Holdings
- ACME Solar Holdings may not be able to grow our portfolio of renewable energy power projects as we rely on highly competitive renewable energy power project auctions. Further, our future growth is significantly dependent on successfully executing our Under Construction Awarded Projects and Under Construction Contracted Projects. In the event, we are not successful in executing our future projects, our business and results of operations may be adversely impacted.
- ACME Solar Holdings is dependent on our Power Purchase Agreements (“PPA”) to sell power and generate our revenue from operations. Further, the terms of our PPAs may expose us to certain risks that may affect our future results of operations and cash flows.
- ACME Solar Holdings business is dependent on our top 10 off-takers, which contributed 95.42%, 89.42%, 89.97%, 87.48% and 81.11% of our revenue from operations during the three months ended June 30, 2024 and June 30, 2023 and for Fiscal 2024, 2023 and 2022, respectively. The loss of any of these off-takers could have an adverse effect on our business, financial condition, results of operations and cash flows.
- ACME Solar Holdings procured 84.48%, 77.15%, 79.37%, 69.84% and 69.95% of our total purchases during the three months ended June 30, 2024 and June 30, 2023 and in Fiscal 2024, 2023 and 2022, respectively from ACME Cleantech, our top supplier. Further, we do not have definitive supply agreements with our vendors for the supply of components and any interruptions in supply could adversely affect our business, financial condition, results of operations and cash flows.
- Restrictions on renewable energy equipment imports may increase our costs of procurement of such equipment.
- ACME Solar Holdings operate in a capital intensive industry and our debt to equity ratio was 4.80 and net debt to equity ratio was 3.89 as of June 30, 2024. If we are not able to source funding for our future renewable energy projects in a timely manner, our business, results of operations and financial condition may be adversely impacted.
Litigation involved
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