Sterling and Wilson shares in focus after emerging the lowest bidder for Gujarat Solar PV project

Sterling and Wilson Renewable Energy Ltd. said it has been declared as the lowest bidder (L1) for a 245 MW (AC) grid connected Solar PV Project tender in Gujarat.The company said it was declared as the lowest bidder for a turn-key engineering procurement and construction (EPC) package to develop the project for a PSU developer.

“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,” Chandra Kishore Thakur, the global CEO of the company, said.

Thakur added that the company continues to build its gross order inflows, including the recent tender win, which has exceeded ₹2,000 crore this year.Sterling and Wilson reported its first quarter earnings

last month. Its consolidated net profit increased to ₹38.7 crore from ₹4.8 crore in the previous year.

Its revenue for the June quarter was up 92.5% at ₹1,761.6 crore from ₹915 crore last year. It said its growth was supported by improved project execution even though it witnessed challenges in the domestic market due to cross-border tensions.

Sterling and Wilson’s earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to ₹85.4 crore from ₹24.8 crore in the first quarter last fiscal. Its EBITDA margin expanded to 4.85% to 2.71% in the year-ago period.

Its gross profit doubled to ₹205 crore, while gross margins increased to 11.7% from 11.1% in the previous year, aided by input costs softening.

The company’s shares were trading 1.17% lower at ₹270.45 apiece. The stock has declined 18.5% in the past month and 42.2% this year, so far.

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