Sterling and Wilson Renewable Energy (SWSOLAR) Q4 20/21 earnings summary

Executive summary

• FY21 consolidated revenue fell 8.9% YoY to ₹5,080.8 crore; net loss was ₹290.0 crore versus ₹304.3 crore profit in FY20.

• COVID-19 delays, higher module and commodity costs, freight costs, and an Australian subcontractor bankruptcy weighed on execution and profitability.

• Order inflow rose 72% to ₹7,936 crore; unexecuted order value reached ₹9,127 crore at March 31, 2021.

Financial highlights

• Consolidated operating revenue was ₹5,080.8 crore versus ₹5,575.3 crore in FY20; other income fell to ₹158.5 crore from ₹303.5 crore.

• Consolidated EBITDA was negative ₹363.0 crore, with a -7.1% margin; EBIT was negative ₹379.0 crore and net loss was ₹290.0 crore.

• Adjusted gross margin, excluding MTM impact, was 0.5%, reflecting higher replacement subcontractor costs and module and commodity prices.

• Operating cash flow remained positive at ₹201.0 crore, down from ₹337.7 crore in FY20; net working capital was negative ₹530 crore at year-end.

Outlook and guidance

• FY22 turnover and profitability were expected to exceed FY21, conditional on COVID-19 not escalating further in target markets.

• A bid pipeline of nearly 15 GWp was planned across key markets for FY22; tendering success was 14.3% in FY21.

• FY22 O&M targets included at least 1 GW of additional third-party contracts in each of domestic and international markets.

• Europe offered a 6–7 GW expected bid pipeline, with a Seville office established to pursue regional opportunities.