Q3 Results-Sterling and Wilson Renewable Continues Recovery With Order wins

Q3 Results-Sterling and Wilson Renewable Continues Recovery With Order wins

Sterling and Wilson Renewable Energy Limited (SWRE), one of the leading solar EPC and O&M solutions provider, announced its financial results for the quarter (Q3) ended 31^st December 2023.

Its consolidated loss in the third quarter (Q3) of FY24 stood at INR 63.7 crore compared to INR 101.2 crore year ago, and revenue rose 43 per cent on year to INR 582.9 crore on improved order executions. Claiming that domestic EPC margins are above 9 percent, the company said that revenue was subdued on a sequential basis as it faced challenges in project execution due to tight financial conditions in Q3.  Readers will recall that the firm was forced to default on debt payments in September. The firm is optimistic that the pace of executions will pick up from the current quarter with liquidity back in the system after its successful QIP.

According to the firm, the quarter (Q3) witnessed strong order inflow from prestigious domestic and global IPPs in the last few weeks of December post successful completion of the QIP.  Total order inflows amounted to over INR 2,400 crore resulting in further strengthening of the order book. SWRE emerged as L-1 bidder for the single largest floating solar project in India for a PSU followed by finalizing four strategic projects from Plenitude Spain (part of ENI Group), Green Infra Wind Energy Limited (GIWEL) a subsidiary of Singapore-headquartered Sembcorp Industries and Cleantech.

Sterling and Wilson completed a successful raise of INR 1,500 crore through a Qualified Institutional Placement (QIP) in December 2023 that received a strong response from both domestic mutual funds and global FIIs. The company also received inflows from promoter indemnity payments and customer settlements, which have been used to bring down debt significantly during this quarter and all overdue debts have been repaid. The Q3 results of Sterling and Wilson have given a new hope to the firm

Despite tight working capital conditions which impacted operations in Q3 FY24, Sterling and Wilson has posted standalone profit and a positive EBITDA on consolidated level.

Sterling & Wilson Renewable Energy Raises INR 1,500 Cr via QIP Route

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Speaking on the quarter results, Amit Jain, Global CEO, Sterling and Wilson Renewable Energy shared“During Q3 FY24 we have witnessed notable strides in advancing our renewable energy portfolio with four unique projects from India as well as our first significant overseas order in three years. Post the successful QIP, our balance sheet has significantly strengthened, and fully geared to pursue the fast-growing solar EPC markets in India and abroad. Our unexecuted order book stands at INR 8,750 crore currently. We are confident to sustain our growth momentum as a lot of our marquee customers are approaching us once again as our balance sheet issues are resolved and the company is nearly net debt free.“

Sterling & Wilson Reports Increase In Income, Reduced Losses 

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Sterling and Wilson, even as it continues on its recovery, has been under the spotlight for possible orders from promoter Reliance Group, which has a 20 GW announced plan for renewable energy since 2022.  Besides that, another large order in Nigeria has been under negotiating before it can be closed formally.