Kolkata-based manufacturer of solar cells and modules Websol Energy System on Friday reported a net profit of Rs 3.53 crore for the January-March quarter of 2020-21 against a net loss of Rs 5.07 crore in the quarter ended on March 31, 2020. Total income of the company rose to Rs 47.71 crore in the quarter from Rs 21.02 crore in same period a year ago.
The net profit of the company in 2020-21 was Rs 67.83 crore, up from Rs 4.13 crore in 2019-20. Total income in the fiscal was at Rs 157.91 crore compared to Rs 206.44 crore in 2019-20.
“The improved performance of the company during the fourth quarter and the full year is a reflection of the sharp turnaround in operating realities of the renewable energy sector in India,” S L Agarwal, Managing Director of the company, said in a statement.
“This improvement has been driven principally by a forward-looking government policy. The company was able to widen cell manufacturing margins, moderate raw material costs as a percentage of revenues from 60.55 per cent per cent in the third quarter to 53.67 per cent per cent in the fourth quarter, strengthening overall competitiveness,” Agarwal added.
The government announced a production-linked incentive scheme for the manufacture of solar modules and raised the customs duty on the import of solar cells to 40 per cent effective April 1, 2022.
The trickle-down of this reality is being reflected in the prospects of Websol Energy Systems, it said, adding that it intends to increase solar cell production to 175 MW and module capacity to 135 MW, representing an attractive increase over the last financial year.