Sterling and Wilson Solar slip on profit booking; increases by more than 58% in six months

Sterling and Wilson Solar (SWSL) fell 2.95% to Rs 402.50 as the meter witnessed a profit booking after a recent surge.

Shares of the Shapoorji Pallonji Group company had risen 16.85% in three sessions to end at Rs 414.75 yesterday, compared to its recent closing low of Rs 354.95 recorded on September 24, 2021.

Over the past six months, the stock has climbed 58.18% while the benchmark Sensex has gained 17.99% over the same period.

On the technical side, the stock’s RSI (relative strength index) stood at 66.595. The RSI fluctuates between zero and 100. Traditionally, the RSI is considered overbought when it is above 70 and oversold when it is below 30.

The stock was trading above its 50-day, 100-day and 200-day simple moving average (SMA) placed at 315.19, 284.88 and 274.47, respectively.

In an exchange filing made during market hours today, SWSL said it received the first order worth around Rs 1,500 crore for its waste-to-energy business from a leading developer of energy assets in the UK and Europe. Last month, the company announced the expansion of its renewable energy offerings to include hybrid power, energy storage and energy-from-waste solutions.

The facility will process 23.2 tonnes of non-recyclable municipal solid waste per hour, diverting more than 185,600 tonnes of waste each year. The facility will generate approximately 19.6 MW of energy, enough to power more than 30,000 homes, and will also provide heat that can be used by nearby businesses.

The scope of work for this project includes the design, engineering, procurement, construction, commissioning and testing of the plant, boiler (fuel – by-pass fuel), generator and condenser at 19 megawatt (MWe) electric steam turbine, pollution control equipment, water treatment plant, associated plant balance and subsequent O&M. Construction will begin in the third quarter of FY22 and will take more than three years to be commissioned, the company said.

Amit Jain, Global CEO of Sterling and Wilson Solar Group, said, “We are delighted to have won our first order in the waste-to-energy segment, which we have recently entered into. It is a double pleasure since it is also our first order on the European market, thus reinforcing our position as the most reliable partner in the EPC segment.

Since waste-to-energy projects have a longer execution period, through such orders, the company will be able to manage a consistent revenue stream year on year.

Separately, SWSL has informed that developers Shapoorji Pallonji and Company and Khurshed Daruvala have facilitated repayment of outstanding loan balances (Rs 741 crore) along with accrued interest to date, by Sterling and Wilson and its subsidiary Sterling and Wilson International FZE to the company and its subsidiary Sterling and Wilson International Solar FZCO respectively.

With this, all of the outstanding loans of Rs 2,563 crore along with accrued interest till date have been fully repaid, the company said.

The company, in its letter dated April 8, 2021, had informed the exchanges that outstanding loans as of that date stood at around Rs 790 crore.

In August this year, via an investor presentation, the company said outstanding loans had been reduced to Rs 741 crore.

On September 15, 2020, the company had informed the exchanges that the board had granted an extension to the promoters until September 30, 2021 to facilitate funding for the repayment of outstanding loans.

Sterling and Wilson Solar (SWSL), a Shapoorji Pallonji Group company, is a global provider of complete solar engineering, procurement and construction (EPC) solutions.

The company reported a consolidated net loss of Rs 76.02 crore in Q1 FY22 against a net profit of Rs 17.22 crore in Q1 FY21. Net sales jumped 11.9% to Rs 1,194.63 crore in the first quarter of FY22 from Rs 1,067.90 crore in the first quarter of FY21.

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