New Delhi, Feb 23 Rooftop solar solutions provider SolarSquare reported a significant increase in its losses, of 2.3 times, to Rs 69 crore in the last fiscal year (FY24).
The earnings from services also dropped by 33.33 per cent to Rs 2 crore, according to the company’s financials.
One of the key reasons behind mounting losses is SolarSquare’s expenses which went up by 65.94 per cent to Rs 229 crore in FY24.
Material costs, which formed the largest share of spending, increased by 52.27 per cent to Rs 134 crore. Employee costs more than doubled to Rs 37 crore, while finance and rental costs stood at Rs 8 crore.
Other operational overheads added another Rs 50 crore to the total spending, as per its financials.
The company’s financial performance was heavily impacted by its high-cost structure.
Its Return on Capital Employed (ROCE) stood at (-)112.85 per cent, and its EBITDA margin was (-)35.96 per cent.
SolarSquare spent Rs 1.31 to earn every rupee, according to reports.
However, the company’s operating revenue surged by 63.5 per cent year-on-year (YoY) at Rs 175 crore in FY24, compared to Rs 107 crore in FY23.
Most of its revenue came from product sales, which grew 66.35 per cent to Rs 173 crore.
The company, which designs and installs rooftop solar systems for homes, housing societies, and commercial establishments, saw its total income increase to Rs 178 crore from Rs 108 crore in FY23.
The company also made Rs 3 crore from interest on deposits and gains on current investments.
The company holds Rs 120.5 crore in current assets, including Rs 60 crore in cash and bank balances.
According to reports, it has raised $56 million from investors like Elevation Capital, Lowercarbon Capital, and Good Capital.
Several reports said that while the company has positioned itself as a leader in the home solar segment, it has yet to fully leverage its financial backing to scale efficiently.
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