Positive EBITDA For Sterling & Wilson REL In Q3/FY2024

Domestic Market Leads Order Inflow For Indian Solar EPC; Bags 1st Significant International Order From Eni Group

Positive EBITDA For Sterling & Wilson REL In Q3/FY2024

Indian domestic market led SWRE’s order inflow during 9M/FY2024. (Photo Credit: Sterling and Wilson Renewable Energy Limited)

  • SWRE reported positive EBITDA for Q3/FY2024, with a 42% YoY jump in revenues 
  • 5 new orders worth INR 24.21 billion included its 1st significant international order from Plenitude Spain 
  • INR 15 billion raised through QIP helped pay off loans and become net cash positive 

Indian solar EPC and O&M services company Sterling and Wilson Renewable Energy Limited (SWRE) exited Q3/FY2024 (period ending December 31, 2023) with more than 42% YoY increase in revenues, and a positive EBITDA. It also bagged orders worth INR 24.21 billion ($291 million) during the quarter.  

The new orders/letters of intent (LOI) for 5 projects comprised one of the largest floating solar module projects in the country from a public sector undertaking (PSU). It was followed by 4 strategic projects including SWRE’s 1st significant international order in 3 years from Eni Group’s Plenitude Spain for a BOS project worth €112 million.  

These contribute to the company’s total orders/LOIs in 11 projects worth INR 55.3 billion ($665 million) for 9M/FY2024. This comprises INR 45.15 million ($543 million) from the domestic market of India. 

SWRE reported INR 5.83 billion ($70 million) of revenues from operations that represent over a 42% YoY increase, but a decline of over 23% QoQ for which the company cites ‘tight financial conditions.’ Nonetheless, it turned EBITDA-positive in the reporting quarter, having raised INR 100 million ($1.2 million). In the previous year, it suffered an EBITDA loss of -INR 53 million. Gross margin improved to 11.2% vis-à-vis 8.6% in the previous quarter.  


SWRE’s business is dominated by EPC works, followed by O&M services. (Photo Credit: Sterling and Wilson Renewable Energy Limited)

The EPC player reduced its total debt by paying off loans due for the next 12 months with the help of INR 15 billion ($180.4 million) raised through a Qualified Institutional Placement (QIP) in December 2023. The management says excluding suppliers credit, it has now turned net cash positive.  

It now expects to improve the execution pace from Q4 onwards with ‘ample liquidity back in the system.’ 

“Our unexecuted order book stands at INR 8,750 crore currently. We are confident to sustain our growth momentum as a lot of our marquee customers are approaching us once again as our balance sheet issues are resolved and the company is nearly net debt free,” said SWRE Global CEO Amit Jain.  

Indian conglomerate Reliance Industries Limited (RIL) is a 40% stakeholder in SWRE (see India’s Mukesh Ambani Goes Solar Shopping). 

About The Author

Anu Bhambhani

Senior News Editor: Anu Bhambhani is the Senior News Editor of TaiyangNews. --Email : [email protected] --

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