Sterling & Wilson Wins 225 MW Gujarat Solar Project

Reliance-backed Sterling and Wilson Renewable Energy Ltd (SWREL) in the last financial results continued its strong comeback in FY 25. The company's net profit for the quarter rose to Rs 55 crores, versus just Rs 1.40 crores last year. Income during the quarter rose to Rs 2,506.45 crore from Rs 1,211.40 crore in the same period a year ago.

Its expenses rose to Rs 2,419.73 crore as against Rs 1,177.66 crore in the fourth quarter last fiscal. The firm, which had reported a loss of Rs 210.79 crore in FY24 due to cancellations, litigations, and other issues, seems to have made a complete turnaround from its troubles, even as the issue of recoveries from erstwhile promoters, the Shapoorji Pallonji Group and others, remains, despite the indemnity from them on covering for losses on pending issues.

The rising numbers indicate the scale of the turnaround for the firm, but many will see a tempering of growth from here on, unless the firm cracks some large deals. An overhang over the firm’s financials continues to be the status of almost Rs 500 crores of bank guarantees that the management claims have been wrongfully invoked by a customer in the US, and in Australia. It remains confident of recovering these amounts on the basis of its belief that it has been invoked wrongfully.