Sterling and Wilson Solar's Revenue Up 12% in Q2 of FY 2021

Sterling and Wilson Solar, one of the leading solar engineering, procurement, and construction (EPC) services providers, has announced the financial results for the second quarter (Q2) of the financial year (FY) 2021 and the first half (1H) of the year ended September 30, 2020.

As per the company’s financial statement, the revenue from operations stood at ₹24.04 billion (~$322.2 million) for 1H 2021, a decrease of 0.01% compared to ₹24.38 billion (~$326.7 million) during the same period last year. For Q2 FY 2021, the revenue from operations stood at ₹13.36 billion (~$179.07 million), an increase of 12% compared to ₹11.93 billion (~$159.9 million) in Q2 2020.

The company reported a net profit of ₹150.9 million (~$2.02 million) in Q2 FY 2021, a drop of 81% compared to ₹794.1 million (~$10.64 million) during the same period last year. For 1H 2021, the company registered a net profit of ₹323.1 million (~$4.3 million), down by 74% compared to ₹12.54 billion (~$168.08 million) in 1H FY 2020.

The company stated that the total income for 1H FY 2021 stood at ₹24.75 billion (~$331.7 million), a marginal decrease of 0.04% compared to ₹25.74 billion (~$345.01 million) last year. For Q2 FY 2021, the total income stood at ₹13.75 billion (~$184.3 million), compared to ₹12.65 billion (~$169.6 million) a year ago, an increase of 0.08%.


The earnings before interest, taxes, depreciation, and amortization (EBITDA) was ₹260 million (~$3.48 million) for 1H FY 2021, down by 85% compared to ₹1.7 billion (~$22.7 million) during the same period last year. The profit after tax stood at ₹320 million (~$4.29 million) for 1 H FY 2021, a decline of 73% compared to ₹1.2 billion (~$16.08 million) in the first half of the FY 2020.

The company had an order inflow of 1.4 GW amounting to ₹56.9 billion (~$762.6 million) in 1H FY 2021, which is 24% of the restated order book for FY 2020 despite the ongoing COVID-19 crisis.

Commenting on the results, Bikesh Ogra, director and CEO of Sterling and Wilson, said, “The execution has picked up significantly across all geographies, and we have also commenced construction at the project sites which we had recently won. Our current operational efficiency is now more than 90% and is poised to reach pre-COVID levels in Q4 FY 21, subject to no lockdowns in geographies where projects are under execution. Despite the challenges posed by the pandemic, we are very pleased to have booked a healthy order inflow to date, which is more than what we had recorded (as restated) in the FY 2020.”

“Our strategy to expand our operations in these markets continues to bear fruits, as in Q2 FY 2021, we have booked additional order inflows for adding capacity of 415 MWp worth ₹20.63 billion (~$276.5 million). Leveraging our EPC expertise, we have a current O&M portfolio of 8 GW (16% higher as compared to Sep 2019) and are on track to add further capacities in domestic as well as international markets both for in-house EPC and third-party clients as well,” Ogra added.

The company reported a negative net working capital of ₹720 million (~$9.6 million) as of September 30, 2020.

The revenue from solar EPC business stood at ₹22.83 billion (~$306.01 million) in 1H 2021, a decrease of 0.03% compared to ₹23.60 billion (~$316.3 million) during the same period last year. For the Q2 FY 2021, the revenue from solar EPC business stood at ₹12.78 billion (~$171.3 million) compared to ₹11.51 billion (~$154.3 million) in Q2 2020, an increase of 0.1 %.

The overseas subsidiary of the parent company includes a loan along with the accrued interest of AED 303,147,069 amounting to ₹6.07 billion. The Board of the overseas subsidiary has decided to extend the repayment timelines until September 2021 and levy additional penal interest.

Earlier, the company reported a 63% fall in profits year over year (YoY) during the quarter ended June 30, 2020 (Q1 2021). The company’s profit stood at ₹172.2 million (~$2.3 million) during the quarter, down significantly from ₹460.1 million (~$6.3 million) in the same period last year.

In April this year, Sterling and Wilson Solar Limited announced that it had received ₹5 billion (~$66.8 million) towards the outstanding loans from its parent company, Sterling and Wilson Private Limited, and its subsidiary Sterling and Wilson International FZE.

Earlier, Sterling and Wilson Solar paid ₹10 billion in dues (~$133.5 million) for its outstanding loan. The company finalized the repayment schedule based on the recommendations of the audit committee, the board of directors, in a meeting held on December 31, 2019.

 

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