During Monday’s trading session, the shares of a leading domestic renewable EPC surged nearly 3.4 percent to Rs. 502.9 on BSE, after the company received a new domestic order worth Rs. 504 crores for renewable projects in Rajasthan, India, from a Private IPP.
With a market cap of Rs. 11,515.6 crores, at 11:23 a.m., the shares of Sterling and Wilson Renewable Energy Limited were trading in the green at Rs. 493.2, up by nearly 1.4 percent, as against its previous closing price of Rs. 486.35.
What’s the news:
Sterling and Wilson Renewable Energy Limited (SWREL) announced receiving a new domestic order worth nearly Rs. 504 crores, from a private independent power producer (IPP).
According to the latest regulatory filings with the stock exchanges, the company received a Letter of Award (LOA) for the supply, installation, and commissioning of a 305 MW AC/396 MWp DC photovoltaic (PV) plant for a project in Rajasthan, India. This order comes from one of SWREL’s repeat customers.
Commenting on the development, SWREL’s global CEO said, “We have made significant inroads into the domestic private IPP market this year. This new project win underscores our strong market position and validates the value we bring to the domestic sector.”
He further added, “Beside the strong order pipeline we are seeing in the private sector there are a large number of bids expected from PSU’s in Q4 which augurs well for achieving our order booking target for the year.”
Previous Order:
On 24th September, Sterling and Wilson Renewable Energy Limited (SWREL) announced securing two new domestic orders from private independent power producers (IPPs), collectively valued at approximately ₹512 crore.
The first order involved the Engineering, Procurement, and Construction (EPC) of a 200 MW AC/250 MWp DC photovoltaic (PV) plant for a project in Gujarat, India. The second order, received as a Letter of Award (LOA), pertains to the EPC of a 50 MW AC/65 MWp DC PV plant in Maharashtra, India.
Financials:
The company reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 36 percent, rising from Rs. 759.5 crores in Q2 FY24 to Rs. 1,030.5 crores in Q2 FY25. This revenue growth was aided by higher execution in Domestic EPC projects. Sequentially, top-line grew by 13 percent.
Likewise, during the same period, the company’s net profit increased from a loss of Rs. 54.5 crores to a profit of Rs. 8.6 crores.
EBITDA for Q2 FY25 reached Rs. 51 crores, representing an increase of around 183.3 percent YoY from Rs. 18 cores in Q2 FY24, with an EBITDA Margin of 4.9 percent, up from 2.3 percent, during the same period.
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Order Book:
As of September 2024, the company’s achieved highest unexecuted order value reaching Rs. 10,549 crores, as compared to Rs. 8,084 crores as of March 2024. SWERL received new orders in six domestic projects worth ~Rs. 2,044 crore post Q1 FY25.
In Q2 FY25, the company received an order for EPC of the largest BESS project (1 GWh) in India and received a turnkey LOA for a 312 MWdc project in Rajasthan.
Meanwhile, the new order inflows totalled Rs. 2,044 crores. These order inflows were impacted by market cyclicality and seasonal factors.
Stock Performance:
The stock has delivered positive returns of nearly 33.5 percent in one year, while around 33.4 percent of negative returns in the last six months. So far in 2024, the shares of Sterling and Wilson Renewable Energy Limited have given positive returns of about 10.5 percent.
About the company:
Incorporated in 2017, Sterling and Wilson Renewable Energy Limited is a Renewable Energy EPC contractor with a pan-India presence and international operations in the Middle East, South East Asia, Africa, Philippines, Thailand, Europe, South America, Latin America, Australia and USA.
In 2022, Reliance Industries Limited (RIL) acquired a 40% stake in SWREL through its subsidiary Reliance New Energy Limited (RNEL).
The principal activity of the company includes the import, export and trading of solar modules, structures, inverters and related accessories, along with the installation and maintenance of renewable energy power-generating facilities and other related activities.
Additionally, SWREL is also involved in setting up power plants, hybrid energy systems, and energy storage solutions, as well as managing integrated solid waste and biomass for power generation, including waste-to-energy projects.
Written by Shivani Singh
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