The engineering, procurement, and construction (EPC) arm of Shapoorji Pallonji Group, Sterling and Wilson Renewable Energy’s consolidated net loss reduced by 37% year-over-year (YoY) to ₹623.9 million (~$7.5 million) for the third quarter (Q3) of the financial year (FY) 2023-24.

In the corresponding period last year, the company had run up a loss of ₹991.5 million (~$11.92 million) due to reduced contributions from the domestic and international EPC business segment.

The company reported a total revenue of ₹6.1 billion (~$73.3 million), a 46% YoY increase. The revenue generated from the domestic EPC segment was ₹4.7 billion (~$56.5 million).

Sterling and Wilson reported a third consecutive quarter of positive gross margins of ~9%, with higher revenue contributions from the domestic EPC segment.

The international EPC segment generated ₹560 million (~$6.73 million).

Sterling and Wilson’s earnings before interest, tax, depreciation, and amortization (EBITDA) stood at a profit of  ₹100 million (~$1.2 million) compared to a loss of ₹530 million (~$6.37).

The company received new orders for five projects worth ~₹24.21 billion (~$291.2 million) during the quarter.

During the quarter, the company received Balance of System (BOS) orders from Sembcorp and Cleantech Solar for 530 MW_dc and 140 MW_dc capacity, respectively.

The company also bagged its first international order in three years for supplying a BOS package to a 221 MW_dc project in Spain.

9M FY24

Sterling and Wilson’s net loss decreased by 72% YoY to ₹2.12 billion (~$25.5 million) for the first nine months (9M) of FY 2024 from a loss of ₹7.54 billion (~$90.7 million) due to higher contribution from the domestic EPC business segment.

Revenue came in at ₹19.09 billion (~$229.6 million), a 6% YoY decline.

During 9M, the company received orders in 11 projects worth ₹55.27 billion (~$664.7 million), out of which the orders from India alone accounted for ₹45.15 billion (~$543.27 million).

Source: Sterling and Wilson Renewable Energy

In December, Sterling and Wilson Renewable Energy completed ₹15 billion (~$180.03 million) fundraising through Qualified Institutions Placement (QIP). Supported by this QIP inflow and customer settlements and promoter indemnity receipts, the company’s net debt was reduced to ₹270 million (~$3.25 million) as of December 2023 from ₹20.19 billion (~$242.89 million) in September 2023.

The company recently received a notification of award from NTPC Renewable Energy for the EPC of a 300 MW solar project at the Khavda Renewable Energy Park in Gujarat, with a total contract value, including operation and maintenance for three years, amounting to ₹15.35 billion ($184.8 million).

In addition, the company obtained a letter of intent from Gujarat Industries Power Company for the EPC of a 600 MW solar project at Khavda Solar Park in September. The total contract value of the project, including taxes and duties, is ₹11.3 billion (~$136.1 million).