Waaree Energies shares fall over 4% on THIS crucial development in the US; Premier Energies down 2%

Waaree Energies slipped as much as 4.69% to ₹2,940 apiece on the NSE. Premier Energies, last seen, was trading nearly 2% lower at ₹997.30.

The decision by the Commerce Department was made after the Alliance for American Solar Manufacturing and Trade filed a petition on July 17, reports added.

The countervailing duty (CVD) petitions by the industry body concern imports of crystalline silicon photovoltaic (PV) cells, whether or not assembled into modules (solar cells), from India, Indonesia and Laos. The petition was also accompanied by anti-dumping duty (AD) petitions on imports of solar cells from these three countries.

The petitioner has alleged that these three countries are providing countervailable subsidies to solar cell producers in India, Indonesia and Laos. Such imports are materially injuring, or threatening material injury to the domestic industry producing solar cells in the US.

The development is significant for companies, especially Waaree Energies. According to reports, Waaree Energies earned 58% of its FY24 revenues from exports, with the US as its key market.

Waaree Energies increased its revenue by 50% in FY22 and then doubled it in FY23 and FY24. Waaree is primarily an export-driven business, with about 70% of its revenue in FY23 coming from countries like the US, Canada, Hong Kong, and Turkey.

However, this shifted in FY24, with 40% of the revenue coming from domestic operations. This change is expected, as the growing demand for solar energy in India is a major driver for revenue growth among local players, according to an article by The ALT Investor.

Similarly, Premier Energies was the largest solar cell exporter to the US market in FY 2024. The company, as per available reports, exported US$31.2 million worth of solar cells to the US in FY2024.

The company has five manufacturing facilities, all located in Hyderabad, Telangana, India, and it conducts its operations through eight subsidiaries in India and overseas.

“Commerce finds that the petitioner filed the petitions on behalf of the domestic industry because the petitioner is an interested party. Commerce also finds that the petitioner demonstrated sufficient industry support with respect to the initiation of the requested CVD investigations,” said the Commerce Department.

Since the petitions were filed on July 17, the period of investigation for India, Indonesia and Laos (CVD investigations) is January 1, 2024, through December 31, 2024, it added.

The US Department of Commerce held consultations with the Government of India on July 30 on the issue. The petitioner has claimed that imports (solar cells and modules) are benefiting from countervailable subsidies and that such imports are causing, or threaten to cause, material injury to the US industry producing these like products, said a report by The Hindu Business Line.

Another claim is that the subject imports from India, Indonesia and Laos individually exceed the negligibility threshold provided for under certain sections of the Tariff Act.

In the petitions, the petitioner identified 43 companies in India, 54 companies in Indonesia, and eight companies in Laos as producers and/or exporters of solar cells, the report added.