Specializing in utility-scale solar power projects, Sterling & Wilson Renewable Energy is a top global supplier of end-to-end solar engineering, procurement, and construction (EPC) solutions. The business oversees every stage of a project’s execution, from engineering and design to commissioning.
It also provides operations and maintenance (O&M) services, expanding its scope of experience to include projects built by outside parties. Notably, it is in a good position to further Reliance’s vision for renewable energy thanks to its strategic partnership with the latter, in which the latter acquired a 40% stake during FY 2021–2022.
Sterling & Wilson Renewable Energy Surges; Financial Performance Boosts Stock Value
Stocks in Sterling & Wilson Renewable Energy have increased 114% in less than six months, from ₹263.85 per share to ₹566 at present. The stock’s noteworthy rise in value can be ascribed to both successful order acquisitions and a strong improvement in its financial performance. The stock is currently trading 705% higher than its April 2020 low of ₹69.75 per share.
On Sunday, the company disclosed its financial results for the fiscal year FY24, which ends in March, as well as for the entire quarter. Due to higher revenue, the company’s financial performance showed significant improvement in the March quarter (Q4FY24), with a net profit of ₹1.40 crore.
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Sterling & Wilson Renewable Energy Reports Strong Financial Performance and Order Growth in FY24
In comparison, the company’s exchange filing from January to March of the previous financial year 2022–2023 shows a net loss of ₹421.11 crore. The company’s total income increased to ₹1,211.40 crore in the fourth quarter of FY24 from ₹86.36 crore the year before. The business revealed that its net loss for the full fiscal year of FY24 decreased from ₹1,174.96 crore to ₹210.79 crore. Due to strong growth in the domestic EPC business, EBITDA turned positive in FY24 at ₹54 crore.
From ₹2,125.87 crore in the previous fiscal year to ₹3,120.79 crore in FY24, the income increased.
The balance sheet of FY24 was significantly strengthened, and there was a net debt reduction of over 90%, which put the company in a strong position to secure a larger share of industry growth. The financials showed a strong rebound both sequentially and year over year. The company’s unexecuted order value increased significantly by 64% in FY24, demonstrating the market’s and its clients’ continued faith in the business, according to the release.
In March 2024, the unexecuted order value was ₹8,084 crore, as stated in the company’s investor presentation, as opposed to ₹4,913 crore in March 2023. The company received LOIs and orders totaling ₹6,023 crore for 13 projects in FY24, an increase from the ₹4,387 crore new order inflow in FY23.
