Sterling & Wilson Reports Lower Revenues and Profits in Nine Months of FY20

Sterling and Wilson, a Shapoorji Pallonji Group company, has released its consolidated and standalone financial results for the third quarter (Q3) and nine months ended on December 31, 2019.

The revenue of the company for the nine months of the financial year (FY) 2019-20 stood at ₹35.150 billion (~$492.9 million), and the gross profit margin for the same period stood at 13.1% as compared to 9.3% for the nine months of FY19. The gross profit margin for Q3 FY20 was 7.8% as compared to 17.4% during the same period in FY19.

The company said that the revenue had been impacted due to the delay in the commencement of a few projects.

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The operation and maintenance (O&M) revenue doubled in nine months of FY20 as compared to the corresponding period in the previous year. The revenue from O&M operation stood at ₹1.317 billion (~$18.46 million) as compared to ₹591 million (~$8.28 million) in nine months of FY19. O&M constituted 3.7% of the revenue in nine months of FY20 as compared to 1% in nine months of FY19.


The revenue from operations for Q3 FY 20 was ₹10.764 billion (~$150.9 million) as compared to ₹16.440 billion (~$230.5 million) for the Q3 FY19. The revenue from operations for nine months of FY20 stood at ₹35,147 million as compared to ₹59.151 billion (~$829.5 million) during the same period in FY19.

The company said that the adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) for the quarter ended December 31, 2019, was ₹598 million (~$8.38 million) as compared to ₹2.079 billion (~$29.15 million) during the same period in 2018. The EBITDA for nine months of FY20 was ₹2.372 billion (~$33.26 million) as compared to the ₹3.510 billion (~$49.2 million) during the same period in FY19.

The cash flow from operating activities amounted to ₹2.174 billion (~$30.48 million) for the nine months of FY20 as compared to ₹7.046 billion (~$98.8 million) for the nine months in FY19. The net working capital for the nine-month period in FY20 was ₹2.513 billion (~$35.2 million) as compared to ₹2.337 billion (~$32.7 million) in March 2019.

As per the company statement, the order backlog in the unexecuted order value (UOV) increased significantly by 67% from ₹77 billion (~$1.07 billion) as on March 31, 2019, to ₹130 billion (~$1.82 billion) as of February 12, 2020.

The company also added that they were constantly monitoring the situation in China due to the outbreak of Coronavirus and noted that it was bound to impact the company in the near term. It noted that production activities at some of its critical suppliers had stopped and activity is expected to resume by the end of February 2020.

The engineering, procurement, and construction (EPC) company has been expanding its global footprint and making inroads in strategic markets like Australia and the U.S. Currently; the company says it has over 7.4 GW of solar power projects with active service contacts as part of its portfolio. The company’s portfolio also includes the 1.17 GW project in Abu Dhabi which is one of the largest single-location projects in the world.

In January this year, Sterling and Wilson paid ₹10 billion in dues (~$140.18 million) of its outstanding loan. The payment consisted of the principal amount and the interest from the date of listing of the company’s shares in August until December 31, 2019.

In August last year, the company had floated its initial public offering targeting to raise ₹31.25 billion (~$442 million). The price band for the IPO was slated at ₹775 (~$11.10) (floor price) to ₹780 (~$11.17) (cap price). The face value of each share was ₹1 (~$0.014).

Image credit: Sterling and Wilson