Sterling and Wilson Renewable Energy (SWRE) is exploring options to infuse capital into the company even as it looks to turn Ebitda (earnings before interest, tax, depreciation and amortisation) positive this fiscal.
Amit Jain, global CEO, Sterling and Wilson Renewable Energy, told FE that the improved order booking, particularly from the fast expanding Indian market, should help the company double its revenues this year.
“We are keeping all options open at this point of time, capital infusion is under deliberation. The board is exploring various options to recapitalise the balance sheet,” Jain said.
Going by the trend in order bookings for the domestic market and the potential for growth, SWRE expects share of revenue from India to nearly triple from 25-30% last fiscal to more than 75% in the current financial year. In India, it does not procure modules for its clients.
The end-to-end renewable engineering, procurement and construction (EPC) solutions provider saw its net losses widen to Rs 1,178 crore in FY23 from Rs 910 crore loss in FY22 due to supply disruptions in solar modules. Its revenue also dipped to Rs 2,015 crore in FY23 from Rs 5,198 crore in FY22.
The pandemic broke down the supply chain across the globe and the Chinese suppliers, which control 90% of the modules market, reneged on the supply of modules to SWRE impacting both its bottomline and revenue, Jain said.
“With the module market correcting itself, contract closure rate has gone up across the world… We are definitely looking at turning Ebitda positive this fiscal. We expect to double our revenue this year,” Jain said, adding that the company will make net profit and its net worth will turn positive in FY25.
With Reliance and Shapoorji as the major shareholders of SWRE, Jain said even if there is no capital infusion, the company on a standalone basis will be positive net worth by end of FY25.
“The Indian market is exploding in a big way and all the PSUs are driving the growth. They are coming up with mega projects. These are NTPC, SJVNL, various electricity boards (SEBs), DVC, NHPC, everybody is expanding their portfolios,” he said, adding the company does not acquire land for developers.
SWRE is expecting to deliver 3-3.5 GW capacity in India in FY24 and going forward it projects a revenue growth of 12%-15% in FY25 and FY26.