Strong Domestic EPC Operations Lowers Sterling and Wilson’s Q3 Net Loss

The company reported a total revenue of ₹6.1 billion, a 46% YoY increase


The engineering, procurement, and construction (EPC) arm of Shapoorji Pallonji Group, Sterling and Wilson Renewable Energy’s consolidated net loss reduced by 37% year-over-year (YoY) to ₹623.9 million (~$7.5 million) for the third quarter (Q3) of the financial year (FY) 2023-24.

In the corresponding period last year, the company had run up a loss of ₹991.5 million (~$11.92 million) due to reduced contributions from the domestic and international EPC business segment.

The company reported a total revenue of ₹6.1 billion (~$73.3 million), a 46% YoY increase. The revenue generated from the domestic EPC segment was ₹4.7 billion (~$56.5 million).

Sterling and Wilson reported a third consecutive quarter of positive gross margins of ~9%, with higher revenue contributions from the domestic EPC segment.

The international EPC segment generated ₹560 million (~$6.73 million).

Sterling and Wilson’s earnings before interest, tax, depreciation, and amortization (EBITDA) stood at a profit of  ₹100 million (~$1.2 million) compared to a loss of ₹530 million (~$6.37).

The company received new orders for five projects worth ~₹24.21 billion (~$291.2 million) during the quarter.

During the quarter, the company received Balance of System (BOS) orders from Sembcorp and Cleantech Solar for 530 MWdc and 140 MWdc capacity, respectively.

The company also bagged its first international order in three years for supplying a BOS package to a 221 MWdc project in Spain.

9M FY24

Sterling and Wilson’s net loss decreased by 72% YoY to ₹2.12 billion (~$25.5 million) for the first nine months (9M) of FY 2024 from a loss of ₹7.54 billion (~$90.7 million) due to higher contribution from the domestic EPC business segment.

Revenue came in at ₹19.09 billion (~$229.6 million), a 6% YoY decline.

During 9M, the company received orders in 11 projects worth ₹55.27 billion (~$664.7 million), out of which the orders from India alone accounted for ₹45.15 billion (~$543.27 million).

India order inflow

Source: Sterling and Wilson Renewable Energy

In December, Sterling and Wilson Renewable Energy completed ₹15 billion (~$180.03 million) fundraising through Qualified Institutions Placement (QIP). Supported by this QIP inflow and customer settlements and promoter indemnity receipts, the company’s net debt was reduced to ₹270 million (~$3.25 million) as of December 2023 from ₹20.19 billion (~$242.89 million) in September 2023.

The company recently received a notification of award from NTPC Renewable Energy for the EPC of a 300 MW solar project at the Khavda Renewable Energy Park in Gujarat, with a total contract value, including operation and maintenance for three years, amounting to ₹15.35 billion ($184.8 million).

In addition, the company obtained a letter of intent from Gujarat Industries Power Company for the EPC of a 600 MW solar project at Khavda Solar Park in September. The total contract value of the project, including taxes and duties, is ₹11.3 billion (~$136.1 million).