Production activity in China slowed for over a month following the outbreak, impacting companies which depended on Chinese suppliers.
Sterling and Wilson Solar, a Shapoorji Pallonji group company, on Tuesday said it received Rs 500 crore from its promoters, which was utilised to repay the company’s external borrowings. With this, the company’s total repayment stands at Rs 1,500 crore, the company said. The solar engineering, procurement and construction (EPC) company’s operations have been impacted due to the outbreak of the novel coronavirus (COVID-19), owing to the slowdown in key equipment deliveries, including solar PV panels, from China.
In February, the company had said that production activities at some of its critical suppliers had stopped. As most material was expected to be shipped in February and March, the company expected a significant impact from this.
Sterling and Wilson Solar director and global CEO Bikesh Ogra on Tuesday said the company is closely monitoring the situation to see how to minimise disruptions.
“The situation in China has improved substantially, ever since, and the dispatches for all equipment including the solar PV panels have already commenced for countries currently unaffected by the lockdowns. However, that said, since our operations are spread over more than 25 countries, COVID-19 is likely to affect the delivery of materials and project execution for the countries which continue to go under lockdown. We are monitoring the situation closely to see how to complete execution of the projects with the least of disruptions,“ Ogra said.
Ogra said that the company is confident of achieving its earlier guidance for the March quarter. “We had guided that the last quarter will be our best quarter for FY20, both in terms of revenue as well as profits, which we are confident of achieving,” Ogra said.
The outbreak of the COVID-19 pandemic led to massive disruption in the supply chain worldwide. Production activity in China slowed for over a month following the outbreak, impacting companies which depended on Chinese suppliers. Since the beginning of February, Sterling and Wilson Solar’s shares fell 73% on BSE. Its shares closed 4.8% up on Tuesday, closing at Rs 76.9 on Friday.
Sterling and Wilson Solar is an end-to-end solar EPC solutions provider, which had a global market share of 4.6% in the year 2018. The company was also the largest solar EPC solutions provider in Africa and the Middle East, with a market share of 36.6% and 40.4%, respectively.