Sterling and Wilson Renewable Energy (SWSOLAR) Q3 24/25 earnings summary

Executive summary

• Achieved second-highest quarterly revenue since listing and highest post-COVID, with Q3 FY25 revenue at INR 1,837 crore and strong execution in domestic and international EPC projects.

• Order inflows for the nine-month period reached INR 5,679 crore, with domestic projects contributing INR 4,525 crore across 11 new projects.

• Unexecuted order value stands at INR 10,167 crore as of December 2024, up from INR 8,084 crore in March 2024.

• Execution realigned due to customer requirements, leading to some project spillovers by one to two quarters.

• Signed MOU for 961 MWp solar PV and 455 MWh BESS in Nigeria; final contract pending.

Financial highlights

• Q3 FY25 revenue grew 215% year-over-year and 78% sequentially to INR 1,837 crore.

• Operational EBITDA at INR 90 crore in Q3, up from INR 23 crore in Q2 and INR 21 crore in Q1.

• Q3 FY25 profit after tax was INR 17 crore, impacted by an INR 18 crore non-cash deferred tax asset charge.

• Consolidated gross margin at 9.4% for Q3; nine-month average around 10%.

• Net debt reduced to INR 175 crore as of December 2024, aided by indemnity proceeds and positive cash flow.

Outlook and guidance

• Confident of achieving INR 8,000 crore order inflow target for FY25, excluding Nigeria.

• Revenue guidance revised to INR 6,000–6,500 crore for FY25 due to customer-driven project realignment and execution delays.

• Targeting INR 2,300–2,500 crore topline for Q4 FY25.

• FY26 revenue expected to align with Q4 exit run rate, with potential for INR 10,000 crore order inflow, excluding Reliance and Nigeria.

• Management remains confident in the recoverability of significant claims and remediation costs.