One of the top global providers of full-service solar engineering, procurement, and construction (EPC) solutions, Sterling & Wilson Renewable Energy Ltd. also specialises in the operation and maintenance (O&M) of solar power projects. The Shapoorji Pallonji Group is the company’s steadfast parent.
Financial Results:
Due in part to stronger contributions from the O&M division, revenue climbed by 1.7% QoQ. Revenue for 9 months ended in FY23 fell by 51.0% YoY as a result of a reduced contribution from ongoing EPC contracts. According to the investor presentation, Gross margins continue to be restrained, mostly because of international EPC contracts.
O&M revenue made up 14.4% of total revenue in Q3FY23 and has increased 55% sequentially. O&M gross margins have increased sequentially from 13% in Q2FY23 to 6.7% in Q3FY23, although projects where O&M expenditures were paid but revenue recognition has not started because the customer has delayed complete handover continue to have an impact on them. PAT loss for the quarter decreased to ₹ 99 crores from ₹ 299 crores and ₹ 429 crores, respectively, for the prior quarter and year, respectively.