Loom Solar: Solar Energy Solutions Provider with Remarkable Growth

Loom Solar has positioned itself prominently in the solar energy market with significant progress, achieving nearly three-fold growth in its operating revenue over the past fiscal year. The company, based in Faridabad, has also successfully tripled its profit during FY24.

Impressive Revenue Growth

According to financial statements filed with the Registrar of Companies (RoC), Loom Solar’s revenue from operations skyrocketed by 2.9 times, reaching Rs 151.5 crore in the fiscal year ending March 2024, compared to Rs 53 crore in FY23.

Product Offerings

Loom Solar specializes in direct-to-consumer solar energy solutions, manufacturing and selling an array of products including solar panels, inverters, and batteries. All revenue generated in FY24 stemmed from these sales.

Cost Analysis

The largest expenditure for Loom Solar was the cost of materials, which surged by 192.9% to Rs 123 crore in FY24. Employee benefit costs increased by 150%, amounting to Rs 5 crore. Furthermore, transportation costs rose by 181% to Rs 4.5 crore, alongside operational expenses totaling Rs 7.5 crore. Overall, the company saw its total expenses rise 2.7 times, reaching Rs 140 crore in the last fiscal year, up from Rs 51 crore in FY23.

Profit and Efficiency

Despite mounting costs, Loom Solar maintained a strong focus on cost-efficiency and revenue growth, resulting in a net profit increase of 3 times to Rs 9 crore in FY24. The company’s Return on Capital Employed (ROCE) and EBITDA margin enhanced to 37% and 9.31%, respectively. Loom Solar reported that it spent Re 0.92 to generate one rupee of operating revenue in the past fiscal year.

Current Assets and Funding

The SIMA-supported company recorded current assets valued at Rs 49 crore, which includes Rs 16 crore in cash and bank balances as of FY24. As per various reports, Loom Solar has successfully raised $2 million in funding so far, with Social Investment Managers & Advisors being notable lead investors.

Founders and Business Strategy

Founded by brothers Amol and Amod Anand, Loom Solar has gained recognition for its lean operational model and astute production outsourcing. The company has steadily succeeded in the competitive solar sector, particularly focusing on selling more compact solar systems in rural regions and tier 2 and 3 cities. By maintaining strict cost controls and achieving higher profit margins, it has been able to sustain reinvestment for growth. Additionally, Loom Solar has excelled in brand development, becoming one of the early adopters of E-commerce platforms like Amazon to boost sales and enhance market presence.

Future Prospects

With a revenue target of Rs 150 crores, Loom Solar is at a pivotal moment in its journey, gaining valuable insights into its target markets. As the company seeks to elevate its growth trajectory, it remains to be seen whether its tenacious spirit and resilience will propel it towards a goal of Rs 500 crores by the 2026-27 fiscal year. Given the company’s history, it is likely that their ambitions will not fall short of this target, as they are expected to unveil various innovative strategies and marketing initiatives along the way.