Sterling and Wilson Solar, the solar engineering and construction arm of the Shapoorji Pallonji Group, has recorded a revenue of ₹11.95 billion (~$161.12 million) in the first quarter (Q1) of the financial year (FY) 2022, up from the ₹10.68 billion (~$144.07 million) posted in the same quarter in FY 2021. This represents a growth in revenue of 11.8%.

The company said revenue was higher in Q1 FY 2022 compared to Q1 FY 2021, when project execution was adversely impacted due to Covid-19.

In Q1 FY 2022, the company registered a loss of ₹760 million (~$10.24 million).

The company’s earnings before interest, taxes, depreciation and amortization (EBITA) turned negative in 1H 2022 and stood at ₹870 million (~$11.73 million). In the same period last year, the company had earned a profit of ₹190 million (~$2.56 million).

The adjusted gross margin declined to ₹280 million (~$3.77 million) in Q1 FY 2022 from ₹1.12 billion (~$15.09 million) in Q1 FY 2021, a 75% YoY decline. The gross margin decline was attributed to an increase in module and commodity prices.

Sterling and Wilson Solar said it had order inflows of ₹84.79 billion (~$1.14 billion) as of June 30, 2021. It also reduced its term debt to ₹640 million (~$8.62 million) from ₹8.1 billion (~$109.16 million) as of March 31, 2020.

The company has order inflows of 623 MW amounting to ₹4.73 billion (~$57.02 million) from the domestic market in FY 22 to date.

Commenting on the results, Amit Jain, Global Chief Executive Officer of Sterling and Wilson Solar, said, “The solar power industry is currently facing headwinds on account of increase in prices of solar modules, commodity prices and rise in freight costs. This has also led to major developers postponing the finalization of their utility-scale solar power projects.”

“We expect the awarding of contracts to pick up in Q3 FY 22. Most of our clients are looking at significant capacity additions, and we remain confident of the opportunities going ahead. Our global presence enables us a lot of flexibility in selecting projects globally. Our unexecuted order book as of August 14, 2021, stands at ₹87.31 billion (~$1.17 billion), which is executable over the period of the next 12 to 15 months,” Jain added.

In Q4 FY 2021, the company’s revenue from operations stood at ₹13.64 billion (~$183.65 million), down 34% year-over-year (YoY) from ₹20.60 billion (~$277.32 million) in Q4 FY 2020.

Mercom had earlier reported that solar developer Amplus Solar acquired 17 on-site operational solar projects from Sterling and Wilson Private Limited.