Q3 Results: Sterling & Wilson Profit Up By 127% On YoY

Q3 Results: Sterling & Wilson Profit Up By 127% On YoY

Indian renewable energy company Sterling and Wilson (SW Solar or SWREL) today announced its financial results for the third quarter (Q3) of FY25, alongside a report for the first nine months of the fiscal year.

127% Surge in Net Profits

The company’s consolidated financial results revealed a significant 127% increase in net profits on a Year-on-Year (YoY) basis. In Q3 FY24, Sterling and Wilson had reported a loss of Rs 62.39 crore. However, in Q3 FY25, the company posted a net profit (Profit After Tax – PAT) of Rs 17.14 crore, reflecting a remarkable turnaround and 127% growth.

Additionally, on a quarterly basis, the company saw a 100% increase in profits, with Q3 FY25 netting a profit of Rs 17.14 crore compared to Rs 8.57 crore in the previous quarter (Q2 FY25).

Sterling and Wilson also improved its financial performance for the first nine months of FY25. In FY24, the company reported a loss of Rs 212.20 crore for the same period. In contrast, during the first nine months of FY25, it posted a total profit of Rs 30.54 crore, highlighting its strong recovery.

Financial growth indicators of Sterling & Wilson

201.85% Increase in Revenues

The company reported a total revenue of Rs 1,842.67 crore in Q3 FY25, up from Rs 1,064.45 crore in Q2 FY25 and Rs 610.31 crore in Q3 FY24. This represents a 201.85% increase in revenue on a YoY basis. On a Quarter-on-Quarter (QoQ) basis, the revenue grew by 73.11%.

Furthermore, a comparison of the nine-month financial performance showed a 100.85% revenue increase. The firm reported a total revenue of Rs 1,909.39 crore during the first nine months of FY23, which surged to Rs 3,835 crore during the same period in FY25.

Legal Wrangles Continue To Dog The Firm

It is worth noting that SWREL continues to grapple with multiple legal issues, where its auditors have given a conditional statement on resolutions. The amounts involved are significant, as in the case of the uncertainty related to the recoverability of remediation costs amounting to ₹479.64 crore (USD 56.07 million) incurred by a wholly owned subsidiary company (“WOS”) of the Group in particular geography due to delays and default by a sub-contractor.

Then there is a case where a WOS of the Group has incurred remediation costs amounting to ₹ 22.67 crore (USD 2.65 million) with respect to defective parts supplied by a supplier.

Finally, there is the matter of ‘wrongful invocation’ of the bank guarantees by two customers aggregating to ₹ 402.40 crore (USD 47.04
million). The Management is confident of recovering the encashed bank guarantees from the customers and accordingly has disclosed Rs. 402.40 crore (USD 47.04 million) as recoverable from customers as at December 31, 2024. In all these cases, the auditors have gone with legal opinion and/or management opinion to consider these outstandings ‘good’.