Sterling and Wilson Renewable Energy Limited (SWSOLAR.NS) Bundle
A Brief History of Sterling and Wilson Renewable Energy Limited
Sterling and Wilson Renewable Energy Limited (SWREL) was incorporated in 2017, emerging as a key player in the renewable energy sector, particularly focusing on solar power projects. As a subsidiary of the Sterling and Wilson Group, a notable name in engineering and construction, the company leveraged its parent’s extensive experience in project execution and management.
By the end of the fiscal year 2020, SWREL had achieved remarkable milestones, with a cumulative installed capacity of 3,830 MW across various projects. The company operates in several countries, including India, the Middle East, Africa, and Asia, enhancing its global footprint.
In 2021, Sterling and Wilson Renewable Energy Limited reported revenues of ₹3,386 crore (approx. USD 454 million), showcasing a growth of 12% compared to the previous fiscal year. The growth was largely attributed to an increase in solar power project installations and operations.
During 2021, the company secured new orders worth approximately ₹7,206 crore (around USD 963 million), which contributed significantly to its order book. By March 2022, SWREL had an order book of over ₹15,000 crore (approx. USD 2 billion), demonstrating a robust demand for its services in the renewable segment.
| Year | Revenue (₹ crore) | Installed Capacity (MW) | New Orders Secured (₹ crore) |
|---|---|---|---|
| 2018 | 1,864 | 1,000 | 1,500 |
| 2019 | 2,782 | 2,500 | 2,500 |
| 2020 | 3,016 | 3,250 | 3,000 |
| 2021 | 3,386 | 3,830 | 7,206 |
| 2022 | 4,000 (est.) | 4,500 (est.) | 8,000 (est.) |
As of the latest reports in 2023, SWREL has been diversifying its service offerings, moving beyond traditional solar installations to include operations and maintenance (O&M) services, which added an additional stream of revenue boosting its operational margins.
The financial health of Sterling and Wilson Renewable Energy is evidenced by its improving profitability metrics. The company reported a profit after tax (PAT) of ₹150 crore (approx. USD 20 million) in FY 2021, with expectations of further increases as they ramp up capacity and enhance operational efficiencies.
Furthermore, in the global renewable energy landscape, SWREL aims to capitalize on the growing trend of sustainability, with countries committing to lower carbon footprints. The International Energy Agency (IEA) anticipates a significant surge in demand for solar energy, which positions Sterling and Wilson as a potential leader in this space.
In terms of stock performance, SWREL made its initial public offering (IPO) in September 2019, raising ₹3,125 crore (approx. USD 420 million). The IPO was oversubscribed by 265%, reflecting strong investor confidence in the renewable energy sector. As of 2023, the stock price has fluctuated around ₹340 per share, influenced by market conditions and broader economic factors.
A Who Owns Sterling and Wilson Renewable Energy Limited
Sterling and Wilson Renewable Energy Limited (SWREL), a subsidiary of the Sterling and Wilson Group, specializes in solar engineering, procurement, and construction (EPC). As of the latest reports, the company has a significant shareholding structure driven by institutional and strategic investors.
As of October 2023, the shareholding pattern of SWREL is as follows:
| Shareholder | Percentage Ownership (%) | Shares Held |
|---|---|---|
| Shapoorji Pallonji Group | 56.22 | 189,528,000 |
| Public Shareholders | 29.68 | 98,495,000 |
| Foreign Institutional Investors (FIIs) | 5.86 | 19,380,000 |
| Domestic Institutional Investors (DIIs) | 8.24 | 27,636,000 |
The company's total share capital is approximately 337,038,000 shares, with a market capitalization estimated at around INR 16,650 crores. The stock is listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) in India.
Sterling and Wilson Renewable Energy Limited has also engaged several joint ventures and partnerships to expand its global footprint in renewable energy. As of the latest financial year, SWREL reported revenues of INR 6,000 crores with a profit after tax of INR 420 crores, reflecting a profit margin of 7%.
In terms of operational capacity, Sterling and Wilson has executed projects totaling over 12 GW of solar power globally, positioning itself as a key player in the renewable energy sector. The company has established its presence in markets across India, the Middle East, and parts of Africa.
The company's ability to attract investments and maintain a diversified shareholding structure has been essential for its growth trajectory. Key strategic partnerships and alliances also bolster its balance sheet, enhancing its operational capabilities and market reach.
The latest share price for Sterling and Wilson Renewable Energy Limited as of October 2023 is approximately INR 493, showing an increase of about 15% year-to-date. This performance aligns with broader market trends indicating a growing interest in renewable energy solutions amidst climate change concerns and government incentives for sustainable energy projects.
Sterling and Wilson Renewable Energy Limited Mission Statement
Sterling and Wilson Renewable Energy Limited (SWREL) is dedicated to providing sustainable and innovative renewable energy solutions globally. The company aims to lead the transition towards a carbon-neutral future through high-quality engineering and design services in solar and other renewable energy sectors.
As of the fiscal year ending March 31, 2023, SWREL reported a total revenue of ₹3,689 Crores, marking a significant increase of **43%** over the previous fiscal year. This growth reflects the company's commitment to expanding its footprint in the renewable energy landscape.
Key Objectives and Values
- Commitment to Sustainability: The mission emphasizes a sustainable approach, striving for minimal environmental impact while maximizing energy production.
- Innovation: SWREL focuses on advancing technological know-how to enhance renewable energy solutions.
- Customer-Centric Approach: The company aims to exceed customer expectations by delivering projects that are on time and within budget.
- International Presence: SWREL seeks to expand its operations across various geographies, with projects in over **25** countries.
Recent Financial Performance
In the latest quarterly earnings report for Q2 FY2023, Sterling and Wilson Renewable Energy recorded an EBITDA of ₹265 Crores, achieving an EBITDA margin of **7.16%**. The net profit stood at ₹140 Crores for the quarter, showcasing the company's efficient cost management strategies.
Project Highlights
SWREL has been involved in several major projects that highlight its operational capabilities:
| Project Name | Location | Capacity (MW) | Completion Date | Client |
|---|---|---|---|---|
| Karnataka Solar Project | Karnataka, India | 150 | June 2023 | NTPC Limited |
| Gujarat Solar Project | Gujarat, India | 200 | August 2023 | Indian Oil Corporation |
| Abu Dhabi Solar Plant | Abu Dhabi, UAE | 100 | January 2023 | Masdar |
| South Africa Solar Farm | South Africa | 300 | March 2023 | Government of South Africa |
With a workforce of approximately **2,000** employees, Sterling and Wilson Renewable Energy remains committed to fostering development and skill enhancement in the renewable energy sector, aligning with its mission to support sustainable energy growth worldwide.
Corporate Social Responsibility (CSR)
The company is also focused on CSR initiatives, as reflected in its investment of **₹50 Crores** towards community development projects in 2022, which includes education and health programs in regions where it operates.
Sterling and Wilson Renewable Energy Limited’s mission is not just about generating power; it's about empowering communities, driving innovation, and protecting the planet for future generations through renewable energy solutions.
How Sterling and Wilson Renewable Energy Limited Works
Sterling and Wilson Renewable Energy Limited (SWREL) specializes in solar engineering, procurement, and construction (EPC) services. The company operates across multiple geographies, including India, the Middle East, Africa, and Europe, contributing significantly to renewable energy projects worldwide.
As of the latest fiscal year, the company reported a revenue of ₹2,948 crore (approximately $395 million) for the year ending March 31, 2023. This represents a growth of 19% from ₹2,475 crore in the previous year. The total project portfolio of SWREL stood at 8.1 GW as of September 2023, reflecting its extensive capabilities in the solar sector.
SWREL primarily focuses on large-scale solar power projects, providing services from design through construction to maintenance. The company has been involved in projects with varying capacities, with notable contracts including:
- 1,000 MW solar park in Rajasthan, India
- 600 MW solar project in Abu Dhabi, UAE
- 300 MW solar farm in Peru
In terms of profitability, SWREL recorded a net profit of ₹162 crore (approximately $21.5 million) in FY 2022-23, compared to ₹135 crore in the previous fiscal year, marking an increase of 20%. The company's EBITDA (earnings before interest, taxes, depreciation, and amortization) margin stood at 9.3%.
| Parameter | FY 2021-22 | FY 2022-23 | Growth (%) |
|---|---|---|---|
| Revenue (₹ crore) | 2,475 | 2,948 | 19% |
| Net Profit (₹ crore) | 135 | 162 | 20% |
| EBITDA Margin (%) | 8.5 | 9.3 | 9.41% |
| Project Portfolio (GW) | 6.5 | 8.1 | 24.6% |
The company benefits from its strategic partnerships and alliances with government agencies and private players, facilitating the development of large-scale renewable energy projects. These collaborations enable SWREL to leverage local expertise and resources, thereby optimizing project execution.
In terms of market positioning, SWREL is part of the larger Shapoorji Pallonji Group, which provides it with robust financial backing and industry credibility. The company recently secured new orders worth ₹4,800 crore (approximately $640 million), strengthening its order book significantly.
SWREL's focus on sustainability is evident in its commitment to reducing the carbon footprint through renewable energy solutions. As of October 2023, the company aims to expand its operations further into emerging markets, planning to increase its international footprint by entering new regions, including Southeast Asia and Latin America.
Overall, Sterling and Wilson Renewable Energy Limited is positioned to capitalize on the increasing global demand for renewable energy solutions, backed by a solid project pipeline and strategic growth initiatives.
How Sterling and Wilson Renewable Energy Limited Makes Money
Sterling and Wilson Renewable Energy Limited (SWREL) generates revenue primarily through its involvement in the renewable energy sector, focusing on solar power projects, engineering, procurement, and construction (EPC) services. With a diverse portfolio, the company capitalizes on different revenue streams, including large-scale solar projects, operations and maintenance (O&M) services, and solar power generation.
For the fiscal year 2022, Sterling and Wilson Renewable Energy reported a revenue of ₹1,915 crores, a growth driven by increased demand for renewable energy solutions globally. The company's project portfolio covers both domestic and international markets, with a significant focus on India, the Middle East, and Africa.
Revenue Breakdown
| Revenue Stream | Amount (₹ Crores) | Percentage of Total Revenue |
|---|---|---|
| Engineering, Procurement, and Construction (EPC) Services | 1,350 | 70.5% |
| Operations and Maintenance (O&M) Services | 300 | 15.6% |
| Power Generation from Solar Projects | 265 | 13.9% |
Within its EPC services, SWREL takes on large-scale projects, managing everything from design to installation. As of 2023, the company has successfully completed over 4,800 MW of solar power projects worldwide.
Furthermore, the O&M segment is pivotal for generating steady income. SWREL maintains over 1,500 MW of solar power projects, supporting operational efficiency and ensuring peak performance, which translates to recurring revenue.
Market Trends and Growth Opportunities
The global renewable energy market is projected to reach USD 1.5 trillion by 2025, and SWREL aims to capture a larger share through strategic partnerships and expansion into new geographic regions. The increasing emphasis on sustainable energy solutions provides fertile ground for growth.
Financial Performance Metrics
| Metric | Value | Period |
|---|---|---|
| EBITDA | ₹250 crores | FY 2022 |
| Net Profit | ₹65 crores | FY 2022 |
| Total Debt | ₹1,200 crores | Q2 FY 2023 |
| Cash and Cash Equivalents | ₹500 crores | Q2 FY 2023 |
As of September 2023, the company maintains a healthy order book of around ₹7,000 crores, indicating robust future revenue potential. This backlog highlights the growing demand for solar energy solutions, as governments and private sectors increasingly prioritize renewable energy investments.
The firm also benefits from government incentives and policies promoting the renewable energy sector. In India, initiatives like the Production-Linked Incentive (PLI) scheme have been instrumental in driving investments in solar energy, further enhancing SWREL’s profit margins.
Key Projects and Collaborations
Sterling and Wilson is involved in several high-profile projects globally. Notable projects include:
- 1 GW Solar Park in the Middle East, operational since 2021.
- 600 MW Solar Power Plant in Rajasthan, India, which is among the largest in the region.
- 1.5 GW Utility-Scale Solar Plant planned in the Americas.
Through these strategic projects and the increasing global shift towards renewable energy, Sterling and Wilson Renewable Energy Limited is well-positioned to continue its growth trajectory in the coming years.
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