Sterling And Wilson Solar Results

Continuing its somewhat strange relationship with the capital markets, Sterling and Wilson Solar finally released its March quarter results, and full year consolidated results, late yesterday night. The auditors apparently delivered signed copies of the books only by 11:24 p.m, as per the firm’s release to the BSE. Preceded by an over 4 hour board meeting to discuss the results.

For the record, the firm declared an impressive set of numbers for the final quarter of 2019-20, as indicated by its management during its December 2019 results declaration.Total income for the March 2020 quarter stood at Rs 21205 million versus  Rs 11832 million in the December 2019 quarter. A 79 percent jump over the previous quarter.

The March results also rang in results for the full year, where the firm ended up with a full year turnover of Rs 58787 million (Rs 5878 crores), versus Rs 84499 million in the previous year. Though not strictly comparable as previous year figures were for its pre-listing days, when the structure of the firm was different. Consequently, profit for the year came in at RS 3984 million, versus Rs 7591 million in 2018-19. That gives the firm gross margins of 6.77 percent finally. The firm’s 2019-20 order book also grew by 15 percent over 2018-19

The full year earnings per share now stand at Rs 19.33, giving the firm a price earnings ratio of 8.9, on its existing stock price of Rs 172 on the NSE (National Stock Exchange)

The firm’s O&M business spiked up, maintaining the momentum of the third quarter, ending up at Rs 1835 million for 2019-20, versus Rs  935 million in 2019.  The primary solar EPC business delivered Rs 53912 million , versus Rs 81452 million in the previous year.

On the important issue of repayments by its promoters, the firm had nothing new to add, noting that a total amount of Rs 12166 million remained outstanding as of March 31st. For the record, promoters of the firm are due to pay another Rs 500 million by June 30 this month. And the final pending amount including interest by September 30.

With no management commentary yet on the results, it is safe to say that the firm has had a solid final quarter, though the future looks just that much cloudy, with the full impact of the Covid-19 pandemic likely to register in the April-June quarter of 2020. With its well spread out operations, and notable wins during the quarter, notably in Australia where it has won orders with a cumulative value of 804 MW so far, the firm is better placed to handle the likely impact now. It’s business model is widely seen as a robust one, with the firm being added to the MSCI Domestic Small Cap Index during the year. Joining another renewable energy firm, Adani Green Energy, in the index. Though their performance has diverged massively. The Adani Green stock is at an all time high price of Rs 450, even as SWWL languishes at Rs 170, from its initial IPO issue price of Rs 780 .

Story to be updated.