KPI Green Energy Share Price went up by 4% After Q2FY24 Result, Declares Dividend

KPI Green Energy, a leading player in the renewable energy sector, recently announced its financial performance and dividend declaration. In the July-September quarter of the fiscal year 2023-24 (Q2FY24), KPI Green Energy reported a consolidated profit-after-tax (PAT) of ₹34 crore. This marked a 57% year-on-year (YoY) increase, reflecting the company's financial strength and growth.

Consolidated revenue from operations for the September-ended quarter stood at ₹215 crore, a notable 43 percent YoY growth from the previous year's figure of ₹159 crore. Similarly, total income increased by 44 percent YoY, reaching ₹216 crore in Q2FY24 compared to ₹160 crore in Q2FY23.

Moreover, KPI Green Energy's earnings before interest, tax, depreciation, and amortization (EBITDA) surged by 49 percent YoY to ₹72 crore in Q2FY24.

Interim Dividend Declaration

KPI Green Energy's Board of Directors has approved a 2.5% interim dividend, which means shareholders will receive ₹0.25 per share, the record date for eligibility is October 20, 2023, and the company promises to pay out the dividend within 30 days from the declaration date.

Market Response

After the impressive Q2FY24 results, KPI Green Energy's stock surged 4 percent, reaching ₹940 per share on the BSE on October 10. Earlier, the stock touched an all-time high level of ₹953 per share on August 29, 2023. On a year-to-date (YTD) basis, KPI Green Energy's stock has given 115 percent, outperforming the Sensex benchmark's 7 percent increase.

In the span of just one month, KPI Green Energy's stock has given an 8% return, which includes today's gains. Zooming out to a six-month perspective, the company's stock has surged impressively by 110%. Over five years, investors have witnessed a remarkable gain of nearly 250%.

Technically, the stock is on an upswing on a monthly time frame, RSI is at around 77, which suggests somewhat overbought. But before you decide to invest, check valuation and other parameters.

Diversification into Captive Power Producer Segment

KPI Green Energy expanded its portfolio by venturing into the Captive Power Producer (CPP) segment and received an order for 4.20 MW solar power projects in this category. These cumulative orders of solar power projects, including those by its subsidiary Sun Drops Energia Private Limited, have now crossed 100+ MW under the CPP segment.

Also, KPI Green Energy secured orders for solar power projects totaling 12.10 MW, out of this KPI Green Energy, will undertake 3.10 MW capacity of these projects, and the remaining 9MW capacity by its subsidiary Sun Drops Energia Private Limited, under the CPP segment and the project is scheduled for completion in various stages throughout the financial year 2023-24.

Renewable Energy Initiatives

Demonstrating its commitment to renewable energy, KPI Green Energy successfully commissioned a 7.80-MW wind-solar hybrid power project in September. This project included 4.20MW wind energy facilitated by KPI Green and 3.60 MWdc of solar capacity provided by its wholly-owned subsidiary KPIG Energia Private Limited.

Also, in August, the company received commissioning certificates from the Gujarat Energy Development Agency (GEDA) for a 4.10-MW wind-solar hybrid power project located in Bharuch, Gujarat. This project comprised 2.10MW wind and 2MWdc solar capacity from the company's own power-generating asset portfolio.

Conclusion

KPI Green Energy's robust Q2FY24 performance, dividend declaration, and ongoing renewable energy projects show the company's growth trajectory and commitment to sustainable energy solutions and positive market response reflects investor confidence in the company's prospects.