Sterling and Wilson Renewable Energy Soars 5% After Securing ₹1,313 Crore Order

Shares of Sterling and Wilson Renewable Energy experienced a notable increase of up to 5%, reaching a peak of ₹238 on the NSE this Thursday. This surge followed the company’s announcement regarding its acquisition of a second international project from South Africa in the current fiscal year.

The firm has secured a turnkey EPC contract for a substantial 240 MW AC Solar PV project in South Africa, valued at approximately $147 million or ₹1,313 crore. In a press release, the company highlighted that with this order, they are now executing four turnkey Solar PV projects for renowned developers within the South African market.

The ongoing projects from the previous fiscal year have demonstrated solid operational progress, contributing to the company’s growing presence in the region. Recently won projects have further solidified its position in a rapidly expanding Solar PV market, which is driven by corporate demand for energy security, decreasing costs, and the necessity for grid stability.

The management underscored South Africa as a pivotal international market, noting that Sterling is currently engaged in four PV projects for esteemed clients. With the latest project acquisition, the company has reported approximately ₹5,088 crore in order inflows this fiscal year, reflecting robust ordering momentum.

Despite this growth, the company recorded a net loss of ₹473 crore, contrasting sharply with a net profit of ₹7 crore from the same quarter last year. Revenue for this quarter saw a significant rise of nearly 70% year-on-year, totaling ₹1,748 crore.

Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) saw a significant decline of nearly 79%, landing at ₹3.7 crore, while the EBITDA margin fell to about 0.2%, down from 1.7% in the same quarter last year. Sterling and Wilson Renewable stands out as a provider of comprehensive renewable engineering, procurement, and construction (EPC) solutions, specializing in utility-scale solar, floating solar, and hybrid and energy storage projects. Their portfolio exceeds 22.8 GWp, encompassing both completed and in-progress projects. With operations in 28 countries, the company has a strong presence across India, Southeast Asia, the Middle East, Africa, Europe, Australia, and the Americas.

Sterling and Wilson shares have decreased by 50% year-to-date.

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