Sterling and Wilson Solar’s order book grew 72% in FY2021, despite Australian subcontractor’s bankruptcy

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From pv magazine India

Sterling and Wilson Solar, one of the world’s largest solar EPC solution providers, announced today its financial results for the year ended March 31, 2021. 

The company received orders for 1.96 GW capacity amounting to INR 7,936 crore for FY21, a 72% increase over INR 4,602 crore for FY20. 

However, its overall fiscal 2020-21 performance was impacted due to one-off exceptional events in the fourth quarter. These included a prime subcontractor going bankrupt in Australia, an increase in prices of modules, higher freight cost, and provision for liquidated damages on delay due to Covid-19.

“The prices of solar modules have risen by over 35% in last nine months. This was on account of a significant increase in the cost of the key raw material ‘polysilicon’. Prices of aluminium, copper and steel have also risen along with freight costs,” said Amit Jain, Global CEO, while sharing the results.

Revenues from operations dipped to INR 5,081 crore from INR 5,575 crore in the previous year. 

Of INR 5,081-crore revenue from operations, solar EPC business contributed INR 4826 crore. Revenue from operations and maintenance stood at INR 252 crore, a 37% increase year-on-year. Other operating income was INR 2.98 crore.

Sterling and Wilson Solar’s unexecuted order book as on June 29, 2021 stood at INR 9,348 crore, which is executable over the next 12 to 15 months. The current bid pipeline continues to remain strong. 

Outlook

Jain said the sector is likely to continue to face some pressure in the near term on account of the increase in solar module prices and supply chain disruptions caused due to COVID-19 outbreak. 

Going forward, he expected the growth to pick up, given the strong fundamentals, government and regulatory commitment, and continued investor interest in the sector. 

With the Covid-19 wave on the wane globally, logistics and supply chain issues will likely get ironed out by Q2FY22 and return to pre-Covid levels. Operational effectiveness is also expected to normalise in the second half FY2021-22, he added.

Author: Uma Gupta

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