Urja Global is dedicated to promoting eco-friendly solutions and has captured the attention of investors seeking exposure to the emerging green energy sector. As a leading player in the renewable energy space, Urja Global has been at the forefront of driving innovation and promoting eco-friendly solutions.
And now, as we look at Urja Global’s performance in the last quarter (Q4) of the fiscal year 2023-2024, investors have a great opportunity to see how this eco-friendly company is doing financially. Let’s explore their profits, strategies, and Urja Global shares’ future potential.
Also read: The renewable energy industry in India: A game-changer for the environment
About Urja Global Ltd.
An industry pioneer in the development and operation of renewable energy sources, Urja Global Ltd. was incorporated in 1992.
The company deals in the sale of solar goods and lead acid batteries as well as the construction, commissioning, and maintenance of solar power plants. The Indian government’s Ministry of New and Renewable Energy (MNRE) has recognised it as a qualified channel partner.
Urja Global Ltd. offers a diverse product portfolio in the domestic market, catering to various energy needs. The company provides batteries such as Lithium ION batteries, automotive batteries, inverter batteries, solar batteries, and e-rickshaw batteries under the brand names ‘Urja’ and I-volt.
Additionally, Urja Global specialises in solar solutions, including solar study lamps, LED lanterns, solar panels, and solar inverters. They also offer innovative solar equipment like the Urja Solar Atta Chakki, solar water pumps, and solar rooftop systems. Notably, Urja Global has ventured into the electric mobility sector, manufacturing e-rickshaws and e-scooters
Urja Global Q4 results: Quarterly performance
Urja Global Ltd. has demonstrated remarkable financial performance in the fourth quarter of fiscal year 2023-2024. The company’s revenue soared by 21.06% compared to the same period last year, reaching ₹13.45 crore, and also saw a significant 16.96% increase from the previous quarter.
Net profits have skyrocketed by an impressive 411.11% year-over-year, although they did experience a 51.06% decline when compared to the last quarter. The net profit margin has also seen a substantial year-over-year increase of 322.19%, reaching 3.42%, despite a 58.16% decrease from the previous quarter.
These figures reflect Urja Global’s strong annual growth trajectory, while also highlighting some volatility in its quarterly financial results.
| CONSOLIDATED RESULTS | JUN ’23 – Q1 | Sept ‘23- Q2 | Dec ‘23- Q3 | Mar ‘24- Q4 |
| Sales (₹ cr.) | 9.67 | 10.96 | 11.12 | 13.02 |
| Net Profit (₹ Cr.) | 0.54 | 0.90 | 0.94 | 0.46 |
| EPS (₹) | 0.01 | 0.02 | 0.02 | 0.01 |
Also read: Green tycoons unite: Adani & TotalEnergies’ $300M eco-venture!
Financial summary: FY24 growth over FY23
| Consolidated results | FY24 | vs. FY23 | % change |
| Revenue (₹ cr.) | 44.47 | 39.58 | +12.35 |
| Profit before tax (₹ cr.) | 2.85 | 1.98 | +43.93 |
| Net profit (₹ cr.) | 2.04 | 1.53 | +33.33 |
Urja Global share price news
Currently, Urja Global share price is trading at ₹21.20 as of May 29, 2024, and has increased 42.76% YTD. As per Urja Global’s share price history, Urja Global shares have jumped 175.32% in the last 1 year and a whopping 734.65% in the last 5 years.
Current financials
| Metric | Value (as of May 29, 2024) |
| Market cap (₹ Cr.) | 1,113 |
| Book value (₹) | 3.31 |
| Dividend Yield | 0.00% |
| ROCE | 1.84 % |
| ROE | 1.18 % |
| Stock PE | 546 |
Competitor information of Urja Global
| Companies (as of May 29, 2024) | P/E | Market cap(₹ crores) | ROE (%) | Net profit last quarter (₹ crores) |
| NTPC | 16.8 | 349807.22 | 13.53 | 6490.05 |
| Power Grid Corp | 18.66 | 290643.87 | 18.30 | 4166.33 |
| Adani Power | 12.83 | 267208.73 | 57.24 | 2737.24 |
Shareholding pattern of Urja Global
The shareholding pattern (as of March 2024) of Urja Global is as follows:
| Promoters | 19.43% |
| Foreign Institutional Investors (FIIs) | 0.06% |
| Domestic Institutional Investors (DIIs) | 0.00% |
| Public | 80.49% |
Investing in Urja Global
Pros
- Positive net cash flow:
The company has improved its net cash flow from -₹0.34 Cr in March 2022 to ₹0.66 Cr in March 2024, suggesting effective cash management and financial stability. A positive net cash flow signifies that Urja Global is managing its finances well. This financial stability is usually reassuring for investors.
The ROCE has been on an upward trend, from 0.95% in March 2022 to 1.84% in March 2024, indicating that the company is increasingly efficient at turning capital into profits. The improving return on capital employed is a sign that the company is effectively utilising its capital to generate profits. A higher ROCE indicates better efficiency and potential returns for shareholders.
Cons
Urja Global’s stock has a significantly higher PE ratio of 546, compared to the sector PE of 111.16. This suggests that investors are paying a premium for each rupee of earnings. While high PE ratios can indicate growth potential, they also come with increased risk if the company fails to meet expectations.
- Poor sales growth over five years:
Urja Global’s sales growth over the past five years is disappointing — going from ₹148.46 crore in March 2021 to ₹44.47 crore in March 2024. Sustainable growth is crucial for long-term investment success. Investors should assess whether the company’s business model and strategies can reverse this trend.
Also read: REC’s ₹1.2 trillion in solar funding: An opportunity for investors?
Conclusion
Urja Global Ltd.’s fourth-quarter results have painted a vivid picture of the company’s journey in the renewable energy sector. Urja Global is a compelling investment option for anyone looking to get into the rapidly expanding green energy sector.
Investors might profit from the worldwide shift towards eco-friendly and sustainable energy solutions by thoroughly assessing the company’s initiatives, position in the market, and growth prospects.
