Hyderabad, India – February 3, 2025: Surana Telecom and Power Limited (NSE: SURANAT&P, BSE: 517530) has reported its unaudited financial results for the quarter and nine months ended December 31, 2024. The company also announced a major investment in solar energy and key board-level changes.
Financial Performance Overview (Standalone)
(All figures in INR Lakhs unless stated otherwise)
Particulars
Q3 FY25
Q2 FY25
Q3 FY24
9M FY25
9M FY24
FY24 (Audited)
Revenue from Operations
205.52
185.18
366.08
591.68
1,140.05
1,509.63
Other Income
123.47
368.28
61.51
760.72
174.47
873.11
Total Income
329.00
553.46
427.59
1,352.41
1,314.51
2,382.74
EBITDA
116.42
303.03
122.14
614.91
336.87
1,000.34
Depreciation
98.73
98.72
92.98
296.18
284.51
425.03
Finance Cost
3.05
4.20
18.10
12.83
61.55
70.76
Profit Before Tax
114.37
298.83
104.04
602.08
275.32
929.58
Tax Expense
18.93
49.73
23.44
100.01
56.50
187.20
Net Profit
95.44
249.10
80.60
502.07
218.82
742.38
EPS (₹) - Basic & Diluted
0.07
0.18
0.06
0.37
0.16
0.55
Key Takeaways:
Revenue decline: Standalone revenue declined 43.9% YoY in Q3, impacted by lower solar tariffs and reduced trading volumes.
Profitability surge: Despite lower revenue, net profit surged 18.4% YoY due to improved cost efficiency and higher other income.
EPS growth: Earnings per share stood at ₹0.07 in Q3 FY25, up from ₹0.06 in Q3 FY24.
Segment Performance
Renewable Energy (Solar)
Revenue declined 56.9% YoY to ₹123.72 lakh in Q3 FY25 due to lower tariffs after the expiry of the higher-rate period under the Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Ltd.
Operating profit stood at ₹23.22 lakh, significantly lower than ₹172.53 lakh in Q3 FY24.
Infrastructure & Others
Revenue rose 3.7% YoY to ₹81.80 lakh.
Operating profit surged to ₹56.28 lakh from ₹2.95 lakh in Q3 FY24, reflecting better margin efficiency.
Strategic Announcements
1. Major Investment in Solar Power
Surana Telecom and Power has established a wholly owned subsidiary, "Sunvibe Energy Private Limited," to develop a 54 MW (AC) solar power project with an investment of ₹190 crore.
2. Key Board Changes
Advait Surana appointed as an Additional Director (Non-Executive), effective February 3, 2025, until the next Annual General Meeting.
Devendra Surana resigned as Director, effective January 16, 2025.
Financial Performance (Consolidated)
(All figures in INR Lakhs unless stated otherwise)
Particulars
Q3 FY25
Q2 FY25
Q3 FY24
9M FY25
9M FY24
FY24 (Audited)
Revenue from Operations
376.55
301.22
589.89
1,115.47
1,868.53
2,527.54
Total Income
500.02
669.50
651.44
1,876.49
2,043.04
3,404.48
Profit Before Tax
69.30
238.66
115.08
632.50
306.04
1,007.96
Net Profit
49.47
190.98
92.75
422.36
260.59
805.68
EPS (₹) - Basic & Diluted
0.04
0.14
0.07
0.31
0.18
0.59
Key Observations:
Revenue decline: Consolidated revenue fell 36.2% YoY in Q3 due to the drop in solar tariff rates and lower trading activities.
Solar segment impact: Renewable energy revenue declined to ₹293.14 lakh, down 42.6% YoY.
Profitability growth: Profit before tax rose 125% YoY for the nine months, driven by cost optimizations and better margin management.
Management Commentary
Narender Surana, Chairman of Surana Telecom and Power Limited, stated: "Despite a reduction in solar tariff rates, our continued focus on cost optimization and new solar power investments will sustain long-term growth. The upcoming 54 MW solar project reflects our commitment to clean energy expansion in India."
Strategic Outlook & Market Positioning
Expansion into renewable energy: The company is leveraging its expertise in solar power, evidenced by the ₹190 crore investment in Sunvibe Energy Private Limited.
Revenue diversification: While solar revenue declined due to tariff adjustments, the Infrastructure & Otherssegment showed stable performance.
Profitability focus: The management’s focus on cost control has improved profit margins, despite revenue headwinds.
Conclusion
Surana Telecom and Power Limited demonstrated resilience in Q3 FY25, navigating a challenging tariff environment in the solar segment while improving overall profitability. The company’s strategic investment in renewable energy positions it well for future growth. Investors will closely watch the execution of the 54 MW solar project and the company’s cost-efficiency measures in the coming quarters.