Sterling and Wilson Reports Rs 522cr Total Income In Q1 FY24

Sterling and Wilson Renewable Energy Limited today announced its First Quarter (Q1) Financial results today. Its total income consolidated (unaudited) came down from Rs 1,211.06 crore in Q1 of FY22-23 to Rs 522.35 crore in Q1 of FY 23-24, a plunge of 57 percent YoY.

It also reported a sharp reduction of total expenses in the first quarter from Rs 1568.92 crore to Rs 617.68 crore on Year-on-Year (YoY) basis. However, with its sharp reduction in expenses in Q1, its loss before tax reduced from Rs 357.86 crore in Q1 of last fiscal to Rs 95.33 crore in the latest Q1.

The Q1 results showed that its segment-wise revenue increased for its Operations and Maintenance (O&M) segment while its revenue from its EPC business deteriorated compared to its Q1 of last fiscal. Revenue from EPC business went down from Rs 1162.01 crore (Q1, FY22-23) to Rs 467.47 crore to the latest Q1.

On the other side, its O&M service revenue showed a positive growth from Rs 44.03 crore (Q1, FY22-23) to Rs 47.46 crore.

However when compared to the Q4 of FF22-23, the firm finally seems to have started on its long awaited turnaround. The total income of the firm improved from Rs 86.36 crore in Q4 of FY2023 to Rs 522.35crore in Q1 of FY2024, reporting a 504.85 percent rise. It also reported a lesser loss in Q1. While by the end of Q4 of FY2023, it reported a net loss of Rs 417.45 crore, in Q1 of FY2024, the firm reported a total loss of Rs 95.47 crore.

The numbers from Sterling and Wilson Renewable Energy indicate the firm is finally almost back to a clean slate, as far as its troubled EPC operations go, with a strong pipeline of projects won after the disaster that was its pre-covid projects (due to fixed costs, even as module prices shot up), the firm should move to a more normal footing from Q2 onwards. What the market will be watching out for, besides announcements of project wins like the ones with NTPC, are news of promoter group Reliance finally becoming a source of projects, as Reliance ramps up on its own targets for renewable energy to power its massive operations.