For any business, one area stands out irrespective of what line of business they are into. SALES! If a company can sell and has pricing power, that can be a lethal combination. Bigger sales get bigger monies and, in the end, of course, bigger profits if companies use the money coming from sales wisely.
As per the exchange filings made for the quarter ending December 2024, two companies have recorded over 200x year-on-year grown in their sales number. Which means they saw over 200,000% jump in sales between December 2023 and December 2024. One would definitely wonder, how did they do it? For investors hunting for the next big thing, this is like potentially hitting the jackpot. But those crazy numbers also make you think: what’s really going on here, and can it last?
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Is this a one-time thing or have these companies have found something special? Maybe a revolutionary product, perfect timing, or a brilliant strategy. Whatever it is, their stories show how fast things can change in business. But all that growth also brings some worries. Can they keep it up? Are they built to last, or is this just a flash in the pan?
Let us take a closer look at these 2 companies…
Websol Energy System Ltd (WESL)
With a market cap of Rs 4,963 cr, WESL is engaged in the business of manufacturing photovoltaic crystalline solar cells and related modules in India.
WESL specializes in the production of photovoltaic crystalline solar cells and related PV modules. The Company’s products are used in both commercial and industrial Solar Energy panels in India and internationally.
WESL’s sales have shown a whopping 28,784% YoY growth. Here is how it has looked in the last few quarters:
QuarterDec-22Mar-23Jun-23Sep-23Dec-23Mar-24Jun-24Sep-24Dec-24Sales (In Cr)0000125112144147
WESL’s revenue dropped FY23 due to the discontinuance of the 250 MW cell line as part of the process to graduate towards the new Mono PERC technology. For the same, production had to be discontinued to dismantle the old manufacturing equipment.
However, in early 2024 the company after the change had taken place, WESL started to sell commercially at capacity. The module line also started soon after.
The EBITDA (earnings before interest,
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