The monetisation of operational assets in the second half of FY24 created a high base for ACME Solar Holdings, triggering a fall in profit and revenue in Q2 FY25.

Shares of ACME Solar Holdings took a hit on November 26 after plunging as much as 7.5 percent on the back of a sharp decline in the company’s Q2 net profit. At 11.52 am, shares of ACME Solar were trading at Rs 250.45 on the NSE

Consolidated net profit for the July-September period dropped 60 percent on year to Rs 15.29 crore, a sharp downturn from the Rs 38.63 crore it reported in the same quarter last fiscal. The drag in net profit was mainly on account of lower revenue after the company monetised 369 MW of operational assets in the second half of the previous fiscal. These assets had contributed Rs 169 crore in revenue the first half of FY24, leading to a high base of the previous fiscal.

On that account, revenue from operations fell over 17 percent year-on-year to Rs 295.14 crore as compared to Rs 356.95 crore in the year-ago period.  EBITDA margin for the quarter also moderated marginally on year to 3.7 percent on account of an increase in manpower expenses and its allocation towards a lower asset base due to asset monetisation.