The momentum in the orderbook and execution capabilities of solar EPC provider Sterling and Wilson Renewable (SWREL) continues to rub off on the share price, rising to hit the 5% upper circuit for a second day, after September quarter results.
The company has guided for FY25 revenue to be Rs 8,000 crore, of which Rs 2,000 crore has been achieved has in the first half. The management said it is confident of executing the projects to meet the remaining Rs 6,000 crore target this financial year.
During the earnings call with analysts, Sterling and Wilson on October 15 said that the orderbook continues to grow rapidly, achieving one of the highest Unexecuted Order Value ever for the company, at 10,549 crore as of Q2FY25. The metric was at Rs 8,084 crore as of March 2024. This provides a higher run rate visibility for the forthcoming quartwers, SWREL told analysts.
SWREL said it has received new orders in six domestic projects, worth Rs 2,044 crore since the June quarter. Most of its clients are in Gujarat or Rajasthan, the company said.
The company said it is confident of achieving the annual revenue guidance, riding on strong execution pick up in H2FY25. The Rs 500 crore loan from IREDA will be instrumental in this execution ramp up, said the company, backed up a credit rating upgrade that has come by this week.
The company added the it is now accepting turnkey projects as well, in a shift in strategy. In H2FY25, the company is pegging the domestic market size to reach 23 GW, underscoring a growing market. This also means a rising competitive intensity in the space, however, S&W said there is enough space in the market for the company to bag further orders as per its risk metrics.
The net profit at Rs 9 crore, higher both QoQ and YoY has been impacted by a non-tax deferred tax asset charge, the company said. This is the third consecutive quarter of positive EBITDA, PBT and PAT at a consolidated level for the company. Revenue from operations stood at Rs 1031 crore, higher by 12.7% on year. Track more on SWREL earnings here.
SWREL also said it is in the process of negotiation of the final terms of its MoU with Nigeria to develop five solar PV power plants, and pending the procedural steps, a final contract signing is awaited.
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