Sterling & Wilson Renewable Energy Limited (SWREL), a leading player in the renewable energy sector, has announced a significant milestone in its domestic operations. The company has emerged as the L1 bidder for a turnkey EPC (Engineering, Procurement, and Construction) package to develop a 245 MW AC grid-connected solar PV project in Gujarat. The contract, awarded by a Public Sector Undertaking (PSU) developer, marks a notable achievement for SWREL in the Indian renewable energy market.

Strong Order Inflows

Chandra Kishore Thakur, Global CEO of Sterling & Wilson Renewable Energy Group, expressed enthusiasm about the company's recent performance. He stated, "We are excited to continue to build our gross order inflows which has exceeded INR 2,000 crore this year. This further strengthens our position in the domestic market, which reaffirms our position as a trusted partner in renewable industry."

The CEO's statement underscores the company's growing footprint in the renewable energy sector, particularly in the domestic market. The substantial order inflow of over INR 2,000 crore demonstrates SWREL's strong market presence and its ability to secure large-scale projects.

Market Outlook

Thakur also provided insights into the overall renewable market conditions, noting, "The overall renewable market including domestic market continues to remain very buoyant, and ordering activity is beginning to gather pace which is likely to benefit EPC players going forward." This positive outlook suggests potential growth opportunities for SWREL and other players in the renewable energy EPC sector.

Company Profile

Sterling & Wilson Renewable Energy Limited has established itself as a global pure-play, end-to-end renewable EPC solutions provider. The company's impressive portfolio includes:

• A total portfolio of over 22.8 GWp, encompassing projects that are commissioned and under various stages of construction.
• An operation and maintenance (O&M) portfolio of 9.3 GWp solar power projects, including projects constructed by third parties.
• Presence in 28 countries across India, South-east Asia, Middle East, Africa, Europe, Australia, and the Americas.

SWREL's extensive experience and global presence position it well to capitalize on the growing demand for renewable energy solutions worldwide.

The latest contract win in Gujarat not only adds to SWREL's robust project pipeline but also reinforces its status as a key player in India's renewable energy landscape. As the country continues to push for greater adoption of clean energy, companies like Sterling & Wilson Renewable Energy Limited are poised to play a crucial role in shaping the future of the sector.

Sterling & Wilson Renewable Energy Limited (SWREL) has reported a robust performance in the first quarter, with revenue surging 93% year-on-year to INR 1,762.00 crores. The company's strong growth comes despite facing challenges due to cross-border conflicts affecting projects in Rajasthan and Gujarat for 40-45 days during the quarter.

Financial Highlights

The company's gross margins saw improvement, benefiting from softening input costs, particularly module prices. The domestic EPC gross margin stood at 10.8%, while the international EPC gross margin was approximately 12.3%.

Order Book and Pipeline

SWREL's unexecuted order book stood at INR 8,348.00 crores as of June, with 88% comprising domestic Indian projects. The company's bid pipeline has grown significantly to over 30 gigawatts, including 26 gigawatts for India alone. The majority of this domestic pipeline is expected to be awarded before December.

Focus on Battery Energy Storage Systems (BESS)

The company is eyeing opportunities in the growing Battery Energy Storage Systems (BESS) market. Key points include:

• 3 gigawatts of BESS projects are already lined up in India
• Another 12.5 gigawatts is under various stages of tendering
• New government policy mandates 20% battery storage capacity for all new solar tenders
• SWREL expects 10% of revenue streams to come from battery and other storage solutions in the near future

International Expansion and Challenges

SWREL is targeting $250 million to $300 million in international orders this fiscal year, primarily in European and African markets. However, the company faces some challenges in its international operations:

• Procedural delays in the Nigeria project
• Ongoing legal expenses in some international subsidiaries
• Write-offs of around INR 21.00 crores for one international project

Management Commentary

C.K. Thakur, Global CEO of SWREL, stated, "This year is setting up to be a very good year for the domestic solar EPC market from the strong bid pipeline that we are seeing buildup." He also mentioned that the company is well-placed to follow the guidance of 15-20% year-on-year growth in order booking.

Future Outlook

• Maintaining operational EBITDA margin guidance of around 7%
• Expecting 20% growth in order booking year-on-year
• Focusing on strategic third-party O&M contracts in India and overseas
• Anticipating growth in the BESS segment, with EPC costs ranging between INR 2.50 crores to INR 4.00 crores per megawatt

Sterling & Wilson Renewable Energy Limited continues to position itself as a key player in the renewable energy sector, with a strong focus on solar EPC and emerging opportunities in battery storage systems. The company's improved financial performance and growing order pipeline indicate positive momentum for the future, despite some challenges in international markets.