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Sterling and Wilson Renewable Energy expects to be profitable in the ongoing financial year based on a healthy order book and an expected $1-billion worth of projects. The company last reported a profit in FY20.
It expects to bag a substantial portion of Reliance Industries’ roll-out of 100GW of solar projects by 2030, the management told analysts in a conference call. The company was equipped to handle the large amount of work expected from the RIL group, they said.
On Thursday, the company, in which RIL subsidiary, Reliance New Energy, has a 40 per cent stake, reported a lower loss of Rs 95 crore in the June quarter, compared to Rs 356 crore a year ago. Revenue fell to Rs 515 crore, from Rs 1,206 crore a year ago.
Gross margin was at 11.3 per cent in the reporting quarter, compared to a negative 14.9 per cent a year ago. Global CEO, Amit Jain, said core operations had turned around, with margins in the domestic EPC (engineering, procurement, construction) business improving. The unexecuted order book would help it sustain margins going forward, while margins in the international business were also improving. The order book was at Rs 4,902 crore at the end of June, while it expects to get orders of 4-5 GW from India this year.
In the June quarter, the company got orders worth Rs 466 crore, including a 1500 MW contract with NTPC.
It has an order pipeline of 22GW, of which India’s contribution would be close to 60 per cent. Of this, more than half is expected from public sector companies such as NTPC, NHPC and Coal India.
The agreement closure for a 961-MW solar power project in Nigeria, the MoU for which was signed in September 2022, is expected in the current quarter, and revenues are expected to flow in from FY25 onwards.
The company ended the June quarter with a net debt of Rs 2,100 crore, which it expects to reduce substantially from receivables and cash flows.
With respect to concerns expressed by analysts over the Shapoorji Pallonji group selling stake in the company frequently, Jain said there was synergy between both promoters, who were providing direction to the company.
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