Now Reading: Rhetan TMT starts 1 MW captive solar project in Gujarat
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Rhetan TMT starts 1 MW captive solar project in Gujarat
Rhetan TMT has started generating electricity from its 1 MW AC captive, ground-mounted solar project at its manufacturing facility in Kadi, Gujarat. The company said the project became operational after completing statutory approvals, infrastructure work, installation, testing and commissioning.
The plant is intended to meet part of the facility’s energy needs and add renewable power to its manufacturing operations. Rhetan TMT shares have fallen 30% in August to Rs 21.62, leaving them 38% below their one-year high. In the June-ended quarter, revenue declined to Rs 4.06 crore and operating expenses exceeded revenue, producing a negative operating margin of 0.66%. Net profit was Rs 3.16 crore, supported by Rs 4.45 crore in other income. The company has also said it is pursuing cost reduction, efficiency improvements and strategic expansion to improve profitability.
Indian Opinion Analysis
Captive solar projects can reduce a manufacturing unit’s dependence on purchased electricity, but the financial benefit depends on generation levels, the plant’s power demand and project costs. The reported quarter also shows why investors may assess the project alongside core operating performance rather than net profit alone, since other income exceeded the reported profit. Future disclosures on electricity savings, project expenditure and operating margins will provide the clearest measure of its effect. The next key signal is the company’s operating performance in the following quarterly results.
Source: livemint.com
This story was synthesised by AI from the source linked above. Methodology and corrections.
