Sterling and Wilson Renewable Energy reports strong financial recovery in FY24

Sterling and Wilson Renewable Energy Limited (SWREL), a prominent player in the home-grown renewable EPC sector, has announced a significant rebound in its financial performance for the fiscal year ending March 31, 2024. The company, listed on BSE (Scrip Code: 542760) and NSE (Symbol: SWSOLAR), reported a remarkable revenue growth of over 50%, with a total of INR 3,035 crore in FY24. This robust performance is supported by a strong recovery in its Domestic EPC business and a strategic reduction in net debt by over 90%.

Key Financial Highlights

SWREL turned EBITDA positive with INR 54 crore in FY24, a notable improvement bolstered by growing domestic operations. The company also reported positive Profit Before Tax (PBT) and Profit After Tax (PAT) in the fourth quarter. A significant achievement for FY24 was the gross margin exceeding 10%, indicating efficient operations and profitability.

Order Book Growth and Debt Reduction

One of the most striking aspects of SWREL’s FY24 performance is the 64% growth in its unexecuted order value, signaling robust future growth prospects and reaffirming market confidence. The substantial reduction in net debt has significantly strengthened the company’s balance sheet, positioning it well to capitalize on the burgeoning industry growth.

Management Commentary

Amit Jain, Global CEO of Sterling and Wilson Renewable Energy Limited, expressed optimism about the company’s trajectory, stating, “We have overcome several challenges in FY24 and SWREL is in a much better place than earlier.” Jain highlighted the company’s robust financial performance and the promising growth prospects based on a strong unexecuted order book. He also noted the strategic improvements made to the company’s balance sheet through aggressive debt reduction.

Industry Outlook and Future Prospects

Looking forward, Jain is confident about the increasing adoption of renewable energy solutions, particularly solar energy, which is expected to drive the company’s future growth. “Renewables are essential for a better tomorrow and solar will be at the forefront of this march towards a sustainable future,” he added, reflecting on the growing awareness and adoption of cleaner energy sources.

The financial turnaround and strategic positioning of Sterling and Wilson Renewable Energy Limited underscore its resilience and potential for sustained growth within the renewable energy sector. The company’s focus on reducing debt and expanding its order book in a competitive market landscape highlights its proactive approach to capitalizing on the opportunities presented by the global shift towards renewable energy.