The order inflow of Sterling and Wilson Solar Ltd (SWSL) in FY22, up to August 14, 2021, stood at Rs.473 crore.
SWSL, in an investor presentation, said that it has received solar EPC orders worth Rs.473 crore during the current fiscal year, up to August 14, 2021. The solar capacity entailed by these orders is 623 mw.
What is interesting to note is that during Q1 (April 1 to June 30), the new order inflow was Rs.221 crore. However, in the period July 1, 2021 to August 14, 2021, SWSL witnessed a much higher order inflow of Rs.252 crore, taking the cumulative orders (year to date) to Rs.473 crore. It appears that the entire order inflow pertained to Indian projects.
As of August 14, 2021, the unexecuted order value was Rs.8,731 crore, with Australia accounting for the highest share of 38.1 per cent. Americas followed with a 31.1 per cent share. The share of orders in India was 9.9 per cent. This order book will be liquidated over the next 12-15 months.
During Q1 of FY22, SWSL commissioned projects worth Rs.1,133 crore.
According to Amit Jain, Global CEO, said, “The solar power industry is currently facing headwinds on account of increase in prices of solar modules, commodity prices and rise in freight costs. This has also led to major developers postponing the finalisation of their utility scale solar power projects. We expect the awarding of contracts to pick-up in Q3FY22. Most of our clients are looking at significant capacity additions and we remain confident of the opportunities going ahead. Our global presence enables us a lot of flexibility in selecting projects globally.”
Higher solar module prices
An investor presentation by SWSL has highlighted that there has been an unprecedented increase in solar module prices since January 2021. The global solar EPC industry has been impacted given that several module manufacturers refusing to honour past price contracts. For SWSL, this has resulted in a net increase in estimated cost of projects by $21 million, after factoring in compensation from customers.
Diversification
It may be mentioned that subject to approval from shareholders, Sterling and Wilson Solar Ltd has proposed to undertake turnkey EPC contracts in emerging areas like hybrid energy power plants, energy storage solutions and waste to energy.
