Shares of Sterling & Wilson Renewable Energy rise 5% as Q2's net loss narrows

 Shares of Sterling & Wilson Renewable Energy rise 5% as Q2's net loss narrows

Following the company's losses narrowing in the September quarter, Sterling & Wilson Renewable Energy saw a 5% increase in its shares, hitting 289.85 in early trading on Monday. The stock was trading at 282 per share at 10:00 AM, up 2.15%.

The firm recorded a consolidated net loss of 54.51 crores on Saturday, a considerable decrease from the losses of 299 crores in the second quarter of FY23 and 95 crores in the first quarter of FY24. This improvement might be attributable to a significant revenue rise that increased by 149% YoY to 760 crore in the September quarter. To put this into perspective, the business reported sales of 313 crore in the same quarter last year and 515 crore in the June quarter before that.

The business offers pure-play, end-to-end solar engineering, procurement, and construction ("EPC") solutions on a worldwide scale. The firm controls all elements of project execution from conceptualization to commissioning and offers EPC services particularly for utility-scale solar power projects with an emphasis on project design and engineering.

Additionally, the business offers operations and maintenance ("O&M") services, even for projects that were built by other contractors. In the last two months, the firm has obtained a number of orders, including a substantial order from NTPC Renewable Energy Limited for $1,535 crore.

According to the business, it obtained the notice of award in September for the 300 MWac EPC project from NTPC Renewable Energy Limited (NTPC REL) in the Rann of Kutch region of Gujarat.

In little over a year, NTPC REL has placed three orders for SWRE. This 300 MWac project is situated between the previous two projects in a cooperative manner. The business said in its September report that the official contract signing is anticipated to take place soon.

For its planned 600 MWac (or 750 MWdc) solar PV project in Khavda, the firm secured a Letter of Intent (LoI) from Gujarat Industries Power firm Limited (GIPCL) in August. 1,130 crore was the entire bid price, which included O&M for three years.