India’s renewable energy sector is experiencing rapid growth, with an installed capacity of over 207 GW as of 2024, marking a 396% increase since 2014. The country aims to achieve 500 GW of non-fossil fuel-based energy by 2030, driven by significant investments and government initiatives to combat climate change and meet rising energy demands.
With a market capitalization of Rs 14,733.09 crore, the shares of Sterling and Wilson Renewable Energy Ltd closed at Rs 631.25 per share, increased around 2 percent as compared to the previous closing price of Rs 621.25 apiece.
Financial performance:-
On Tuesday Sterling and Wilson Renewable Energy Ltd announced its financial performance, revenue zoomed by 35 percent on year on year basis from Rs 759.52 crore in Q2FY24 to Rs 1,030.49 crore in Q2FY25, however in Quarter on a Quarter basis revenue increased by 12 percent from Rs 915.06 crore in Q1FY25 to Rs 1,030.49 crore Q2Y25.
Moreover, net profit is magnified by 115 percent on a yearly basis from Rs 54.51 crore loss in Q2FY24 to Rs 8.57 crore profit in Q2FY25, meanwhile on a quarter-on-quarter basis net profit jumped multifold times by 77 percent from Rs 4.83 crore in Q1FY25 to Rs 8.57 crore in Q2FY25.
Revenue guidance:-
Sterling and Wilson Renewable Energy Ltd have guided for FY25 revenue to be Rs 8,000 crore, of which Rs 2,000 crore has been achieved in the first half. The management is confident of executing the projects to meet the remaining Rs 6,000 crore target this financial year.
According to the earnings call, Sterling and Wilson’s order book continues to increase fast, with one of the company’s biggest Unexecuted Order Values ever, at 10,549 crore as of Q2FY25. SWREL has received fresh orders for six domestic projects totaling Rs 2,044 crore during the June quarter. Most of its customers are from Gujarat or Rajasthan.
The company is confident that it will meet the annual revenue guidance based on a strong execution pick-up in H2FY25. The Rs 500 crore loan from IREDA will be instrumental in this execution ramp-up, according to the company, which is supported by a credit rating upgrade this week.
In a strategic move, the business has also begun to accept turnkey projects. In H2FY25, the business expects the domestic market to reach 23 GW, indicating that the industry is expanding. This also means increased competition intensity in the industry; nonetheless, there is ample market headroom for the firm to get further orders based on its risk criteria, the company stated.
Order Book & recent orders:-
As of FY24, the order book stands at ~Rs.8084 Crs. compared to Rs.4913 as of Mar’23. The company has received total orders / LOI in 13 projects worth Rs.6,023 Cr in FY24 compared to a new order inflow of Rs.4,387 Cr. in FY23. Project executed worth Rs.2825 Cr in FY24.
In FY24, the company secured multiple significant orders, including a ~375 MW DC Module + BOS package and a 220 MW DC floating solar project. It also received BOS orders totaling ~530 MW DC and ~140 MW DC, alongside international contracts for 221 MW DC in Spain and 45 MW DC in Italy.
Geographical Split of Order Book:-
Sterling & Wilson Renewable Energy Ltd’s order book is geographically split as follows: India accounts for 84.8% of the total, Europe represents 14.3%, and Australia contributes 0.5%. This distribution highlights the company’s strong focus on the Indian market while maintaining a presence in Europe.
Company profile:-
Sterling and Wilson Solar Ltd. is a prominent global provider of end-to-end solar engineering, procurement, and construction (EPC) solutions, as well as solar power project operation and maintenance. The firm is supported by the powerful parentage of Reliance Industries.
Written by:- Abhishek Singh
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