Linde India Limited , a leading industrial gas company, has announced its complete exit from FP Solar Shakti Private Limited, marking a significant shift in its investment strategy in the renewable energy sector.

Stake Transfer Details

Linde India has transferred its entire 18.29% stake in FP Solar Shakti Private Limited to Fourth Partner Energy Private Limited. The transaction involved the transfer of 16,50,465 equity shares for a consideration of Rs 4.79 crore. This amount matches the original investment made by Linde India in March 2023, indicating a break-even exit for the company.

Reasons for Exit

The stake transfer follows the termination of two key agreements:

1. Power Purchase Agreement
2. Share Subscription and Shareholders' Agreement

While the specific reasons for the termination of these agreements were not disclosed, it suggests a strategic realignment of Linde India's investments in the solar energy sector.

Regulatory Compliance

In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Linde India has duly informed the stock exchanges about this development. The company's Company Secretary, Amit Dhanuka, officially communicated this information to both the BSE Limited and the National Stock Exchange of India Ltd.

Implications

This exit from FP Solar Shakti, coming just six months after the initial investment, raises questions about Linde India's future plans in the renewable energy sector. While the company has managed to recover its initial investment, the quick turnaround might indicate a reassessment of its strategy in solar energy partnerships.

For Fourth Partner Energy Private Limited, the acquisition of Linde India's stake could potentially strengthen its position in the solar energy market, though the implications of this move for FP Solar Shakti's operations remain to be seen.

Investors and industry observers will likely be watching closely to see if this move signals a broader shift in Linde India's investment strategy, particularly in relation to renewable energy projects.

Linde India , a leading industrial gas company, has announced its fourth-quarter financial results, showcasing improved profitability despite a slight dip in revenue. The company has also recommended a dividend, signaling confidence in its financial position.

Profit Surge

Linde India reported a consolidated net profit of ₹1.20 billion for the fourth quarter, marking a significant increase from ₹1.05 billion in the same period last year. This represents a year-over-year growth of approximately 14.29%. The company also saw a sequential improvement in profits, with net income rising from ₹1.16 billion in the previous quarter.

EBITDA Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed robust growth, reaching ₹2.10 billion in Q4, up from ₹1.80 billion in the corresponding quarter of the previous year. This increase in EBITDA reflects the company's improved operational efficiency.

Margin Expansion

Linde India demonstrated significant margin expansion, with the EBITDA margin improving to 35.46% in the fourth quarter, compared to 28.50% in the same period last year. This substantial increase of nearly 700 basis points indicates the company's ability to manage costs effectively and enhance profitability.

Revenue Decline

Despite the strong profit performance, Linde India experienced a slight decline in revenue. The company's Q4 revenue stood at ₹5.90 billion, down from ₹6.30 billion in the year-ago period, representing a decrease of approximately 6.35%.

Dividend Announcement

In a move that will likely please shareholders, Linde India's board has recommended a dividend of ₹12 per equity share. This dividend announcement underscores the company's commitment to returning value to its shareholders and reflects confidence in its financial stability.

Financial Performance Overview

Linde India's Q4 results paint a picture of a company focusing on profitability and operational efficiency. While facing a slight revenue headwind, the significant improvements in EBITDA, margins, and net profit demonstrate the company's resilience and effective cost management strategies. The recommended dividend further reinforces the company's solid financial footing and commitment to shareholder returns.