Sterling and Wilson Renewable Energy (SWSOLAR) Q1 24/25 earnings summary

Executive summary

• Achieved INR 2,170 crore in new orders in Q1 FY25, with a strong mix of domestic and international projects, including major wins in South Africa and India.

• Achieved 78% year-over-year revenue growth in Q1 FY25, driven by higher execution in domestic EPC projects.

• Board approved unaudited standalone and consolidated results for Q1 FY25, with a return to profitability after prior losses.

• O&M portfolio grew to 8.2 GW as of June 2024, supporting future recurring revenue.

Financial highlights

• Q1 FY25 operating revenue at INR 915 crore, up 78% year-over-year, but down 22% sequentially due to seasonal factors and liquidity constraints.

• Gross margin at 11.1% in Q1 FY25, up from 10.3% in FY24; O&M gross margin boosted by one-off income, with recurring O&M margin at 23%.

• Q1 EBITDA at INR 37 crore (4% margin); Q1 PAT at INR 5 crore, impacted by INR 10 crore non-cash deferred tax asset charge.

• Net debt reduced to INR 97 crore as of June 2024; net borrowings declined by INR 19 crore sequentially.

• Standalone revenue from operations at INR 885.47 crore, up 131% year-over-year; standalone net profit at INR 73.59 crore.

Outlook and guidance

• Confident of achieving FY25 revenue and order inflow guidance of INR 8,000 crore+.

• Unexecuted order value rose to INR 9,396 crore as of June 2024, up from INR 8,084 crore in March 2024.

• Execution pace to pick up from Q2, with H2 expected to be significantly stronger.

• Long-term outlook includes potential to double revenues in 4 years, with significant upside from Nigeria and Reliance projects.

• No significant debt repayments are due until Q3 FY25.