Shares of Sterling and Wilson Renewable Energy (SWREL) soared 10 per cent to Rs 616.90 on the BSE in Monday’s intra-day. This came after the company’s March quarter (Q4FY24) profit before tax (PBT) and profit after tax (PAT) turned positive after nearly 12 quarters. The company reported PAT of Rs 1 crore in Q4FY24, against a net loss of Rs 421 crore in a year ago quarter.
Revenue has grown significantly both YoY and sequentially at Rs 1,178 crore due to execution pace picking up in the domestic projects in Q4. Liquidity is likely to continue to improve with closure of legacy projects and improved credit ratings, the company said.
The company has reported positive gross margins in all four quarters of FY24 and full year gross margins at 10.3 per cent. A growing contribution from the domestic EPC segment has aided the same. The company’s unexecuted order book which largely comprises domestic projects currently is likely to help sustain gross margins going forward, the company said.
As of Q4FY24, unexecuted order value stood at Rs 8,084 crore compared to Rs 4,913 crore in Q4FY23.
SWREL offers design, detailed engineering, procurement, construction, installation, commissioning and operations & maintenance services under turnkey EPC and BoS (Balance of System) solutions for utility-scale, rooftop and floating solar power projects. The company also offers solar plus storage solutions.
The management said the company’s future growth prospects look promising based on its strong unexecuted order book and business fundamentals continuing to improve. The market opportunity for renewable EPC players is continuing to grow significantly both in India and internationally, and the company is well aligned to capture the growth.
As SWREL comes back stronger, the management said they remain confident of delivering an improved performance in terms of growth and revenues over the next few quarters.
At 01:45 pm; SWREL was trading 9 per cent higher at Rs 613.15, as compared to 0.5 per cent rise in the S&P BSE Sensex. The average trading volumes on the counter jumped four-fold. A combined 13.63 million equity shares have changed hands on the NSE and BSE.
