Sterling and Wilson Solar Ltd (SWSL) has reported a year-on-year growth of 72 per cent in order inflows during FY21.
In a statement, SWSL said that it received order inflows of Rs.7,936 crore, translating to 1.96 GW in FY21. This, in value terms, was 72 per cent higher than the comparable Rs.4,602 crore worth of orders received in FY20.
The outstanding order book position, as of June 29, 2021, stood at Rs.9,348 crore, which is executable over the next 12-15 months.
Exceptional event
Though order inflows improved, the financial performance of SWSL was adversely impact by an exceptional event that took place in Q4 of FY21, in that a prime subcontractor of SWSL in Australia went bankrupt. SWSL has a significant presence in the Australian solar EPC space. Of the total order inflows in FY21, Australia accounted for Rs.4,226 crore, or 53 per cent.
Impact of commodity prices
Other debilitating factors included increase in prices of modules, commodities as well as higher freight cost and provision for liquidated damages on account of delay due to COVID-19.
Commenting on the results, Amit Jain, Global CEO, said, “The prices of solar modules have risen by over 35 per cent in last 9 months. This was on account of significant increase in the cost of the key raw material ‘polysilicon’. Prices of aluminium, copper and steel have also risen along with freight costs. We expect the sector to continue to face some pressure in the near term on account of rising solar module prices, increase in commodity cost and supply chain disruptions caused due to COVID-19 outbreak. However, we are working with our clients to mitigate these issues and find a win-win solution.”
Growth momentum to stay
“Driven by increasing environmental concerns due to the use of conventional energy, the international solar power industry will continue to grow at rapid pace over next 2-3 decades. With our compelling business model, global footprint, deep-rooted client relationships, ability to provide customized solutions and strong track record of executing complex and large-scale projects supported by a robust balance sheet, we are confident of maintaining our position as the leading player in the global solar power EPC market,” Jain added.
(SWSL has newly adopted a practice wherein only those contracts for which formal contracts have been signed are being considered. Earlier even contracts where letters of itntent were in hand were considered. The removal of such “non-contracted” contracts has caused a downward revision in the order inflow figure for FY20.)
Featured photograph shows a large ground-mounted solar PV plant built by Sterling and Wilson Solar Ltd, in Oman.
