Sterling & Wilson Renewable Energy shares surge 5% as net loss narrows in Q2

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Sterling & Wilson Renewable Energy witnessed a 5% surge in its shares, reaching ₹289.85 in early trade on Monday after the company's losses narrowed in the September quarter. At 10:00 AM, the stock was trading with a gain of 2.15% at ₹282 apiece. The company on Saturday reported a consolidated net loss of ₹54.51 crore, a significant improvement from the ₹299 crore loss in Q2FY23 and the ₹95 crore loss in Q1FY24.

This positive change can be attributed to a substantial revenue surge, marking a 149% YoY increase to ₹760 crore in September quarter. To put this in perspective, in the same quarter of the previous year, the company reported revenue of ₹313 crore, and in the preceding June quarter, it recorded revenue of ₹515 crore. The company is a global pure-play, end-to-end solar engineering, procurement, and construction (“EPC") solutions provider.

The company provides EPC services primarily for utility-scale solar power projects with a focus on project design and engineering and manages all aspects of project execution, from conceptualising to commissioning. The company also provides operations and maintenance (“O&M") services, including for projects constructed by third parties. The company has secured multiple orders in the last two months, including a significant ₹1,535 crore order from NTPC Renewable Energy Limited.

In September, the company said it received the notification of award for the EPC project of 300 MWac of NTPC Renewable Energy Limited (NTPC REL) at Khavda RE Power Park, Rann of Kutch, Gujarat. This is the third order for SWRE from NTPC REL in just over a year. This 300 MWac project is synergistically located between the first two projects.