Loom Solar surpasses Rs 150 Cr revenue in FY24, profits triple

Entrackr · 21d

Solar energy solutions provider Loom Solar has achieved around three-fold growth in its operating revenue during the last fiscal year. The Faridabad-based company also tripled its profit in FY24. Loom Solar’s revenue from operations soared by 2.9X to Rs 151.5 crore in the fiscal year ending March 2024 from Rs 53 crore in FY23, as per its financial statements sourced from the Registrar of Companies (RoC). Loom Solar is a direct-to-consumer solar energy firm that manufactures and sells solar panels, inverters, batteries, and other solar products. Its entire collection in FY24 came from the sale of these products. The cost of materials was the largest expense for Loom Solar, surging by 192.9% to Rs 123 crore in FY24. Employee benefit costs also kept pace, growing 150% to Rs 5 crore. Meanwhile, transportation expenses rose by 181% to Rs 4.5 crore, alongside Rs 7.5 crore booked under other operational expenses. Overall, the company's total expenses jumped 2.7X to Rs 140 crore in the last fiscal year from Rs 51 crore in FY23. Despite the rising costs, Loom Solar's focus on cost efficiency and revenue expansion led to a net profit rising by 3X to Rs 9 crore in FY24. The company's Return on Capital Employed (ROCE) and EBITDA margin improved to 37% and 9.31%, respectively. On a per-unit basis, Loom Solar spent Re 0.92 to earn a rupee of operating revenue during the past fiscal. Loom Solar recorded current assets worth Rs 49 crore, which includes Rs 16 crore of cash and bank balance in FY24. It has raised $2 million of funding to date, with Social Investment Managers & Advisors as its lead investors. Backed by a young founding team of brothers Amol and Amod Anand, Loom Solar has focused on selling much smaller solar systems in rural areas and tier 2 and 3 cities, where tight costs control and higher margins provided it the fuel to keep investing in growth. The firm has been among the earliest to use E-commerce platforms like Amazon to drive sales and awareness. At Rs 150 crores, the firm is at an inflection point with great insights into the markets it serves. As growth moves to the next level, it remains to be seen if its scrappy grit and resilience will carry it to possibly Rs 500 crores by 2026-27. Knowing the history of the firm, they will certainly not aim any lower than that, pulling out more than a few innovations and marketing surprises along the way.