With Bulging Order Book, SW Solar Aims Rs 6000cr Revenue In H2

Bolstered by a historic order book value, Sterling and Wilson Renewable Energy (stock code-SW Solar) aims to add Rs 6,000 crore in revenues during the second half (H2) of the financial year 2024-25. In its latest investors call, the company’s top management expressed optimism about the upcoming quarters, Q3 and Q4, referring to the current Indian solar market as an “exploding market.”

The management informed investors that its unexecuted order value now stands at Rs 10,500 crore, the highest in the company’s history. The renewable energy project developer had set a target of Rs 8,000 crore in FY25, and up to Q2, it had already achieved Rs 2,000 crore in revenue.

“So, as we have guided that revenues for this year were going to be INR8,000 crores. So, we have already achieved more than INR2,000 crores in first 2 quarters, and that revenue guidance for the H2 remains INR6,000 crores. So we’ll execute the projects to achieve the guided revenue,” Amit Jain, Global CEO of the firm, told investors.

Sterling & Wilson Renewable Energy (SW Solar) noted that most of its clients are based in Gujarat and Rajasthan, while it is also working on international projects in Spain, South Africa, and Nigeria, among others. Jain mentioned that the company is likely to complete its under-construction projects at Khavda before the monsoon next year.

“In India, the 4 gigawatt of portfolio we are executing in Khavda. So all the projects are in an advanced stage, and we are expecting or we are targeting to commission all the projects in Khavda before the next monsoon. The other projects for most of the private IPP players are in Rajasthan, which most of the — quite a bit of portfolio is targeted to be commissioned before March. So that’s how we plan to execute our entire portfolio and achieve the turnover of revenue of INR8,000 crores before the financial year,” Jain said in the investors call.

SW Solar’s expectations for a strong business performance in H2 are rooted in the prediction of large renewable tenders from PSUs and significant opportunities from Independent Power Producers (IPP). “We are continuing to see a very strong bid pipeline in place for India with over 23 gigawatts of projects likely to be awarded in the next 6 to 12 months. Apart from the typically strong PSU pipeline, we are also seeing a strong pipeline of private IPP projects coming to the fore,” Jain said.

He further noted, “In H1, 11 out of 12 projects that we have won have come from the private sector. Our existing private customers have exciting growth plans, and we are confident of growing the order book with them in H2. Simultaneously, the majority of the PSU bids will get finalized in Q3 and Q4, which will lead to a much larger addressable market for us in H2 as compared to H1.”