Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Sterling and Wilson Renewable Energy Ltd (BOM:542760, Financial) achieved its highest quarterly revenue since listing, with a 114% year-on-year growth.
- The company reported a substantial full-year revenue growth of 108% year-on-year, reaching INR6,302 crores.
- The domestic order inflow showed a healthy year-on-year growth of nearly 21%, with significant contributions from the domestic market.
- The company has entered new growth markets, including battery energy storage solutions and wind EPC, expanding its service offerings.
- The unexecuted order value stands at over INR9,096 crores, providing good P&L visibility for upcoming quarters.
Negative Points
- The international order pipeline has become smaller, focusing on select projects in select geographies, leading to a decline in the overall pipeline.
- There are delays in the Nigeria project, with financial closure expected to take six to nine months post-order signing.
- The company faces strong competition in the domestic EPC sector, impacting market dynamics.
- There are concerns about domestic manufacturing of solar modules and cells trailing demand, posing risks to pricing and availability.
- The company experienced a ForEx loss in March 2025, impacting the reported EBITDA for the quarter.
Q & A Highlights
Q: With 40 gigawatts of renewable energy projects pending for PPA, will this impact order inflow for FY26?
A: The pipeline of 22-23 gigawatts for Q1 and Q2 is not impacted by PPA issues. However, there might be an impact in subsequent quarters, but not in the immediate future. - Chandra Thakur, Global CEO
Q: Can you provide clarity on the foreign exchange loss reported this quarter?
A: The foreign exchange loss is a translation loss, not a transaction loss, primarily due to currency volatility affecting our subsidiaries. It is a book entry and should stabilize with currency normalization. - Ajit Singh, CFO
Q: What is the status of the Nigeria project, and are there concerns about delays due to local issues?
A: The Nigeria project is delayed due to procedural issues, but there are no negative developments. The project is funded by US Exim, and we expect it to proceed once these issues are resolved. - Chandra Thakur, Global CEO
Q: What is the expected revenue growth for FY26, and how does it relate to the current order book?
A: We anticipate a 15-20% revenue growth over FY25, supported by our current order book and expected new orders. The unexecuted order value provides good visibility for achieving this growth. - Chandra Thakur, Global CEO
Q: How are you addressing the volatility in O&M gross margins?
A: The O&M margin volatility this quarter was due to one-off expenses. For the full year, we expect margins to stabilize between 20-25%. - Ajit Singh, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
