Sterling & Wilson Renewable Energy Reports ₹429 cr Loss in Dec Quarter

Sterling and Wilson Renewable Energy (SWREL) on Monday reported a consolidated net loss of Rs 428.78 crore in the quarter ended December 2021. The company had posted a consolidated net profit of Rs 22.45 crore in the quarter ended December 2020, according to a BSE filing.

Total income of the company stood at Rs 1,502.23 crore in the quarter under review, up from Rs 1,347.64 crore in the same period a year ago. Its total expenses rose to Rs 1,918.68 crore in the latest December quarter from Rs 1,324.28 crore in the year-ago period. While the EPC segment grew, the O&M (services) segment saw degrowth, perhaps signaling a shift in focus back to EPC.

Last month, in a formal confirmation of its deal with Reliance New Energy Solar (RNESL), SWREL announced the completion of transactions that enable the Reliance group to join as a promoter group. This happened after the Reliance group paid the balance Rs 1583 crore for the buyout of 25.90 percent of the firm, taking its effective stake to just over 40 percent. The firm had posted total revenues of Rs 3330 crore on standalone basis in 2020-21, and a Rs 111 crore loss.

A week earlier than the announcement, SWREL also approved the allotment of 2.93 crore equity shares for Rs 1099 crore to RNESL, completing the first phase of the transaction. The open offer from Reliance, and the initial purchase, were both competed at a price of Rs 375 per share.

For SWREL, the entry of Reliance marked an end to a key chapter in its journey, especially as a listed firm on the stock exchanges. The firm, which had priced its IPO (Initial Public Offer) at Rs 780, has been beset by issues since its listing, due to adverse market conditions that impacted its promoters ability to repay loans taken from the firm, and subsequently, even earnings performance, which has been lumpy and inconsistent, to say the least. On the positive side, it did its reputation as a premier solar EPC no harm with some major wins across the globe, notably in the middle east and Australia.

The Sterling and Wilson group is primarily engaged in the business of complete turnkey solution for engineering, procurement, construction, operation and maintenance of renewable energy projects.