Sterling and Wilson Renewable Energy Limited has informed the Exchange about Investor Presentation
October 13, 2022
BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai – 400 001
National Stock Exchange of India Limited Exchange Plaza Bandra Kurla Complex Bandra (East), Mumbai – 400 051
Scrip Code: 542760
Symbol: SWSOLAR
Sub.: Investor presentation on the Unaudited Consolidated and Standalone Financial results of Sterling and Wilson Renewable Energy Limited (“the Company”) for the quarter and half year ended September 30, 2022
Ref.: Regulation 30 read with Part A of Schedule III of SEBI (Listing Obligations and
Disclosure Requirements), Regulations, 2015 (“Listing Regulations”)
Dear Sir/ Madam,
Pursuant to the Listing Regulations, please find enclosed herewith the Investor presentation on the Unaudited Consolidated and Standalone Financial results of the Company for the quarter and half year ended September 30, 2022.
The above is for your information and record.
Thanking you.
Yours faithfully, For Sterling and Wilson Renewable Energy Limited
Jagannadha Rao Ch. V. Company Secretary and Compliance Officer
Encl.: As above
Sterling and Wilson Renewable Energy Limited (Formerly known as Sterling and Wilson Solar Limited) Regd. Office: Universal Majestic, 9th Floor, P. L. Lokhande Marg, Chembur (W), Mumbai - 400043 Phone: (91-22) 25485300 | Fax: (91-22) 25485331 | CIN: L74999MH2017PLC292281 Email: info@sterlingwilson.com | Website: www.sterlingandwilsonre.com
The future of solar energy is
STERLING AND WILSON RENEWABLE ENERGY LIMITED ONE OF THE LEADING SOLAR EPC AND O&M SOLUTIONS PROVIDER IN THE WORLD
Investor Presentation – 2Q FY23 13 Oct 2022
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Sterling and Wilson Renewable Energy Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions, regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company.
Company Overview
Business Overview
Market Opportunity
Way Forward
04
06
15
28
Our Journey
Our Presence
Financial Highlights
Beyond Business
05
14
22
30
| WHO WE ARE
Leading Solar EPC and O&M Solutions Provider
We offer Design, Detailed Engineering, Procurement, Construction, Installation, Commissioning and Operations & Maintenance services under turnkey EPC and BoS (Balance of System) solutions for utility-scale, rooftop and floating solar power projects. We also offer solar plus storage solutions.
E C N E L L E C X E L A N O T A R E P O
I
EPC Portfolio 12.6 GWp
O&M Portfolio 7.2 GWp*
Global Manpower 2239
I
I
N O T N G O C E R L A B O L G
EPC and O&M of Abu Dhabi 1,177 MWp One of the world’s largest single location PV plant
Regional presence across 26 countries Significant cost benefit and timely execution
End-to-end “concept to commission” solar EPC
* O&M portfolio includes ~1.8 GW of EPC projects under construction/commissioning for which contractual revenue is expected to commence in 2H FY23
Market Leader
Leading Solar EPC solutions provider in the world
Leading Solar O&M player globally
No. 1 Solar EPC
player in Australia
| A GLOBAL LEADER IN SOLAR EPC IN 8 YEARS
2016 Diversified into Rooftop Solar
Started third-party O&M services
2013 Completed our first turnkey EPC project
Started international solar operations
2018
Expanded operations in Australia by acquiring a controlling stake in GCO Electrical Pty Ltd
2020 Ranked 2nd largest O&M player in the world by Wood Mackenzie
2022
Reliance New Energy acquired 40% stake in Sterling and Wilson Renewable Energy Limited
Awarded one of the largest domestic EPC contract of 1.6 GW by NTPC
2015
Recognized as the largest Indian solar EPC player
Largest single-axis tracker plant in India (60 MWp)
2011 Ventured into solar EPC business
2017
Demerger of S&W Solar from S&W Group
Incorporated a subsidiary in Spain
Started operations in USA
Bagged world’s largest single location solar EPC project in Abu Dhabi
2019
Listed on BSE and NSE
Commissioned our first floating solar project of 450 kWp
Ranked No. 1 solar EPC in the world by IHS Markit
2021 Expanded our offerings to include Hybrid Energy, Energy Storage and Waste-to- Energy solutions.
Turnkey EPC solutions for utility-scale and rooftop projects.
Sterling and Wilson Renewable Energy offers a range of turnkey and Balance of System (BoS) solutions for utility-scale, rooftop, and floating solar power projects. The company also offers solar plus storage solutions.
Our turnkey EPC solutions comprise design, engineering, procurement, construction, project management, testing, supply, installation and commissioning to operation and maintenance and connecting the solar power project to the grid.
All project design and execution services excluding the procurement of modules and components are offered as part of the BoS solutions. The rooftop solar systems offered includes off-grid / standalone solar PV systems, off-grid PV-DG synchronous system and on-grid / grid-tie solar PV systems.
Our Expertise
Utility Scale
• Rich experience with both crystalline • Single-axis tracker string inverter • Solar PV+ storage & Floating Solar • Bifacial Module (Experience with Robotic
Cleaning)
Roof Top
• Solar PV on Carport • Building-Integrated PV
• •
Solar PV in RCC flat roofs Solar PV on sheet metal roofs & Floating Solar PV
• Array on Space frames (elevated structures) • Array Ground mounted Solar PV
Utility Scale
Solar EPC
| CAPABILITIES AND SOLUTIONS
We offer a fully integrated Battery Energy Storage Solution
Cell
Module
Grid
S C P d n a m e t s y S S S E B
Rack
Power Converter + DC & AC Breaker
Solar + BESS System Modelling
• Minute level charging & discharging profile • Temperature & irradiance modelling • Power system modelling & network performance assessment • Transient stability analysis & short circuit analysis • Availability & reliability study • Grid impact studies including SCR level, HVRT, LVRT, harmonics etc.
BESS Modules & Tools
• Equivalent circuit-based model • Degradation estimation model • Detailed LCOE calculations • Augmentation optimization tool • Battery sizing optimization tool • Frequency regulation support analysis • Battery performance use case generation
Controls and Automation
• Market Interface • Energy Management Systems • Battery Management and Controls
S&W Leverages Over
• Procurement of Battery Racks & BMS from Tier 1
•
manufacturers through Long Term Supply Agreement Leveraging 10 GW of procurement experience from Tier 1 suppliers
• Tie ups with leading EMS providers for customized solution
In GWp
O&M Manpower Strength 544+ in-house team with expertise in advanced technologies
| SOLAR O&M PLAYER GLOBALLY
Sep-22
*
FY 2022
FY 2021
FY 2020
FY 2019
7.2
6.6
8.4
7.5
5.6
Growing O&M Portfolio * Total O&M capacity as of Sep 22
Value Engineering For Clients • Designing innovative, customized and cost- effective solutions to improve PR and plant availability
• Minimal operating expenses; adaptability to
modern technologies like automation
Solar O&M Best Practices Mark • Our processes meet the highest international
standards as O&M provider
• We follow the best practices towards operation
and maintenance of solar projects
• We practice standard exhaustive checklist
provided by Solar Power Europe and scored more than the threshold level
* O&M portfolio includes ~1.8 GW of EPC projects under construction/commissioning for which contractual revenue is expected to commence in 2H FY23
| WHAT DIFFERENTIATES US
Expeditious Quick Decision Making & well-defined internal processes leading to timely execution
Experience Strong Track Record of executing complex & large-scale EPC projects leading to high customer retention and repeat business
Talent Pool Strong in-house Design and Engineering team providing customized solutions
Cost Effective Leveraging the Low-Cost India Base for global execution providing cost competitive solutions
Global Presence One of the only Global Pure-Play Solar EPC players with a significant presence and operational experience across geographies
Strong Relationships A Bankable Player with strong relationships with customers and other key stakeholders
| TECHNICAL AND SUPPLY CHAIN
MODULES
Bi-Facial Framed Total of 447 MWp
Mono-PERC Total of 1266 MWp
Poly C-Si Total of 5500+ MWp
Thin Film Total of 220 MWp
Poly c-Si, DG Total of 130 MWp
INVERTER
TRACKER
String Inverter Huawei /Sungrow Total of 460 MW
Central Inverter ABB / SMA / Sungrow / GE TMEIC / Ingeteam / Sineng/ Total of 5000+ MW
1P Nex Tracker, Convert, Gamechange Total of 1032 MW
2P Soltec, Arctech, ATI Total of 390 MW
| TECHNICAL AND SUPPLY CHAIN
FOUNDATION
Screw Total of 1177 MW
Ramming Total of 400 MW
Concrete Pile Total of 4700+ MW
Pre-Drill with Ramming Total of 282 MW
Ballast Foundation Total of 51 MW
FIXED STRUCTURE
FLOATING STRUCTURE
CABLING SYSTEM
East - West Total of 1177 MW
South Facing Total of 3300+ MW
C&T Total of 427 MW
CAB System Total of 28 MW
| TECHNICAL AND SUPPLY CHAIN
MODULE CLEANING
Fully Automatic Robotic Total of 1177 MW
Semi Automatic Cleaning Truck with Brush Total of 388 MW
Manual With Water Truck Total of 151 MW
Manual With Pipelines Total of 3000+ MW
SUB STATION AND TRANSMISSION LINE
SCADA SYSTEM
33 & 66 kV 20+ Projects for a total capacity of 600+ MW
110 kV 3+ Projects for a total capacity of 300+ MW
132 kV and above 15+ Projects for a total capacity of 2600+ MW
Scada System Inaccess, Ingeteam, Armax Total of 1400+ MW
SOFTWARE
Inhouse Software • PV SYST • E-TAP • PSSE • CIVIL-3D • PV CASE • ALL Pile
DETAILED STUDIES Review Capabilities of studies • Hydrology Study • Geotech Studies and Geophysical Studies • Contour Mapping • Corrosion Analysis • Storm Water Pollution Prevention Plan • Pullout and Lateral Tests On Piles • Wind Studies for Wind Definition • Wind Tunnel Studies
| ACROSS THE GLOBE
USA
Mexico
UK
Spain
Jordan
Kazakhstan
USA 454.73 MWp
Morocco
Egypt
UAE
Vietnam
Saudi Arabia
Thailand
MENA 2,192.48 MWp
Oman
Kenya
Tanzania
Zambia
India
India 7,920.50 MWp
Philippines
Malaysia
Indonesia
Singapore
Southeast Asia 323.18 MWp
Australia
Australia 1,112.88 MWp
Latin America 575.30 MWp
Chile
Argentina
Namibia
South Africa
Rest of Africa 250.11 MWp
Offices in 26 Countries
Projects in 17 Countries
| SOLAR IS CHEAPER.. FASTER.. CONSISTENT
SOLAR PV LCOE IS NOW THE LOWEST GLOBALLY
$/MWh
150
149
85
82
69
120
90
60
30
Onshore wind
Fixed-axis PV
Tracking PV
Coal
Gas
81
74
46 45 40
1H
2H
1H
2H
1H
2H
1H
2H
1H
2H
1H
2H
1H
2H
1H
2H
1H
2014
2015
2016
2017
2018
2019
2020
2021
2022
Source: BNEF (1) The global benchmark is a country weighted-average using the latest annual capacity additions
Years to install
Nuclear
Natural Gas
Wind
Solar
t u p t u o e t a r e n e g
3
3
2
6
Standard deviation (%)
Hydro
Wind
9%
Solar
4%
n o i t c u d o r p h W M w o L s a H
y t i l i
b a i r a v
20%
d n a
l l
a t s n
i
o t
r e t s a F
Source: US EIA, Annual Energy Outlook, Feb 2021; Moody’s, Apr 2017
| SOLAR INSTALLATIONS TO GROW AT ~15% CAGR IN KEY MARKETS
Annual Utility-Scale PV installations (GW)
India
South-East Asia & Australia
Middle East and North Africa
Rest of Africa
Europe
USA
Latin America
9.8
1.7
3.8
1.2
7.4
7.3
2.1
2019
2021
2022E
2025E
CAGR 21-25E
10.8
11.8
18.6
14.6%
1.9
2.9
1.7
11.5
17.8
3.7
50.3
3.3
5.1
2.0
13.5
18.7
6.7
61.1
4.8
9.8
4.0
17.3
29.2
4.5
88.2
41.3%
35.6%
23.9%
10.7%
13.2%
5.0%
15.1%
Grand Total (excluding Rest of World)
33.3
Source: BNEF (1) China and Japan constitute major countries in rest of world (2) Annual solar PV installations in India, SEA, Middle East, Africa, Europe, USA, Latin America and Australia.
| KEY MARKET DEVELOPMENTS
United States
Solar EPC activity had stalled considerably in 1HCY22 due to Dept of Commerce investigation on import of modules from 4 South-East Asian countries
EU
EU voted to keep some specific uses of natural gas and nuclear energy in its taxonomy of sustainable sources of energy in some circumstances
India
BCD imposition has increased module prices
Solar EPC activity in Rajasthan impacted by environmental issue of migratory birds (GIB)
Australia
Torrential rains impacted EPC activity
White/Blue collar resource shortage
President Biden’s directive in June 2022 has given relief to module imports from the 4 countries for additional 2 years
Expiry of tax credits by 2025 likely to keep solar installation growth strong in the US for next 2-3 years
More than 30 GW of renewable power projects expected to be permitted on BLM lands between fiscal years 2022 and 2025. The vast majority of that capacity will be solar powered
EU countries have fast tracked renewable development to reduce dependence on Russian oil and gas
Germany has fast-tracked its net-zero emission target. Solar and renewable installations have to grow nearly 4x between CY25 – CY30 to meet target
Major conglomerates have announced investments and commitments towards RE targets
PSUs have indicated a strong pipeline
New government has increased the 2030 target renewables supply to main grid to 82% (69% earlier);
Infrastructure Australia approved USD 22 bn project to provide Singapore renewable power supply
Boost to migrant cap announced in Sept 22 to address skill and labour shortage
| MEGA PROJECTS
REGIONS WITH LAND AVAILABILITY SUCH AS MIDDLE-EAST & AUSTRALIA HAVE ANNOUNCED LARGE PROJECTS
Country
UAE
Oman
Saudi Arabia
Project Name
Capacity
Expected Start
Abu Dhabi PV scheme
Manah 1 and 2
PIF Phase 2
1.5 GW
1 GW
3.2 GW
2023
2023
2023
GREEN HYDROGEN CAN FURTHER INCREASE THE SIZE AND SCALE
Project Name
HyDeal Ambition
Hydrogen City project
Svevind Energy JV
Western Green Energy Hub
AMAN
Green Energy Oman
Asian Renewable Energy Hub
Desert Bloom Hydrogen
HyEnergy Zero Carbon Hydrogen
Murchison Renewable Hydrogen Project
Queensland Hydrogen Hub
Helios Green Fuels Project
Pacific Solar Hydrogen
Base One
H2-Hub Gladstone
Green Hydrogen & Chemicals
HyEx
Location
Europe
USA
Kazaksthan
Australia
Mauritania
Oman
Australia
Australia
Australia
Australia
Australia
Technology
95 GW Solar
60 GW of Solar & Wind
45 GW of Solar & Wind
50 GW of Solar & Wind
30 GW of Solar & Wind
Timeline
Completion by 2030
2 GW by 2025
Early stage
Early stage
Early stage
25 GW of Solar & Wind
One-third by 2028, Complete by 2038
16GW Onshore wind & 10GW Solar
Completion by 2028
Wind & Solar
Wind & Solar
2025
Completion by 2030
3.7GW Onshore wind & 1.5GW Solar
Completion by 2028
Wind & Solar
Saudi Arabia
Onshore wind & solar
Australia
Brazil
Australia
Oman
Chile
Solar
Wind & Solar
Not specified
3.5GW of Wind & Solar
Solar
Start by 2024
Starting in 2025
Expected in 2024
Completion by 2025
Start by 2025
Completion by 2025
Completion by 2030
| PSU MARKET – A HUGE OPPORTUNITY TO TAP INTO
PSUs HAVE INDICATED A STRONG PIPELINE
Entity
NTPC
NHPC
SJVNL
Coal India
REMCL / RITES
NLC
GSECL
SECI
Total
Commissioned capacity (GWp)
Under Execution (GWp)
Projected Pipeline (GWp)
FY22-23E
FY23-24E
FY24-25E
2.22
0.05
0.07
-
0.07
1.96
0.39
0.02
4.78
3.8
2.3
1.6
0.3
-
-
1.0
9.0
5.8
0.8
0.7
0.5
0.2
0.9
0.6
0.2
9.7
5.2
1.0
1.8
0.8
0.3
1.4
0.7
0.2
6.2
1.2
2.2
1.0
0.4
1.6
0.8
0.3
11.3
13.7
Source: Company websites, Press reports
| KEY COSTS HAVE BEGUN TO SUBSIDE
0.28
0.27
0.27
0.26
0.25
0.22
0.19
Australia
LATAM
18,400
15,000
14,000
i
a n h C x E s e t a r
i
t h g e r F
) r e n i a t n o c
t e e f 0 4 r e p
(
11500
9300
10,000
4900
2000
1,800
10000
8,000 7,500
4,000
3,500
Sep ’20 Mar ’21 Sep ‘21
Dec ’21
Mar ’22 Jun ‘22
Sep ‘22
Sep ’20 Mar ’21 Sep ‘21
Dec ’21
Mar ’22 Jun ‘22 Sep ‘22
Aluminum
Copper
9,776 9,775 10,235
9,005
6719
8,254
7,647
1,745 2,192
2,954 3,003
3,537
2,397 2,180
72,500
73,900
65,800
61,400
57,500
)
T M
/ s R
(
e c i r P
l
e e t S n a i d n I
53790
45000
Sep ’20 Mar ’21 Sep ‘21
Dec ’21
Mar ’22 Jun ‘22 Sep ‘22
Sep ’20 Mar ’21 Sep ‘21
Dec ’21
Mar ’22 Jun ‘22 Sep ‘22
s d n e r t e c i r p e u d o M
l
* *
)
p W
r e p D S U n
i
e c i r p
(
) )
T T M M
/ / D D S S U U
( (
x x e e d d n n I I E E M M L L
** Module Prices are expected to decline in 2HCY22 and CY23E as per BNEF estimates.
| 2Q FY 2023
| KEY HIGHLIGHTS FOR 2Q FY23
• Company has been awarded NTPC 1.6 GW order worth INR
• Net debt of Rs 885 crore as of 30 September 2022
2,200 crore (including 3 years O&M)
• Company entered into MOU with Nigerian government and Sun Africa LLC to set-up 961 MWp solar PV plants along with 455 MWh BESS
•
Revenue decreased by 38.9% YoY in 1HFY23 due to lower contribution from on-going EPC projects
• Gross margins remain suppressed primarily on account of
International EPC projects
•
•
•
In the US, labor cost increased due to shortage of labor supply
In Australia, labor cost/site overheads increased due to loss of productivity on account of unprecedented rain at site locations
Translation losses increased due to adverse QoQ exchange rate movement
• We anticipate net debt to decrease with new order
inflows, and completion of US/Australia projects
• Advance and performance bank guarantees encashed by four
customers amounting to Rs 588.5 crore of which
•
•
Final settlement agreement signed with customer for two projects and a sum of Rs 349.7 crore has been refunded
The Company is in discussion with the other two customers (projects completed)
• No further impact on the results of the Company beyond 31 December 2021 on account of LDs and other matters in accordance with the Indemnity agreement (refer Note 5 of Consolidated Financial results)
• Unexecuted EPC order book of INR 2,654 crore as of October
12, 2022 with nearly 78% domestic EPC
| CONSOLIDATED PROFIT & LOSS – 2Q FY23
INR Crore
Q2FY23
Q2FY22
Q1FY23
FY2022
INR Crore
Q2FY23
Q1FY23
Revenue from Operations *
Gross Margin (post project MTM)
Gross Margin %
403
(170) (42.1%)
1,438
(177) (12.3%)
1,206
(180) (14.9%)
5,199
(503) (9.7%)
Other Income *
4
19
5
35
Recurring Overheads
Recurring Overheads %
86 21.5%
91 6.3%
94 7.8%
345 6.6%
Non-recurring Overheads
MTM (gain)/ loss on cancellation of forward cover Forex
-
(3)
24
14
9
9
5
-
65
21
8
20
EBITDA
(275)
(281)
(339)
(862)
EBITDA Margin %
(67.9%)
(19.5%)
(28.1%)
(16.6%)
EBIT
EBIT Margin %
PBT
PBT Margin %
PAT
PAT Margin
(278)
(284)
(342)
(896)
(68.9%)
(19.8%)
(28.3%)
(17.2%)
(308)
(284)
(358)
(910)
(76.3%)
(19.8%)
(29.7%)
(17.5%)
(299) (74.1%)
(284) (19.8%)
(356) (29.5%)
(916) (17.7%)
* To be read in conjunction with Note 5 of the consolidated financial results
Revenue from Operations - International EPC - Domestic EPC - Operation and Maintenance Total YOY growth rate Gross margin - International EPC - Domestic EPC - Operation and Maintenance Total Gross margin %
200 165 38 403
(182) 17 (5) (170) (42.1%)
1,000 162 44 1,206
(202) 19 3 (180) (14.9%)
• Gross margins remain suppressed primarily on account of International EPC projects. In the US, labor cost increased due to shortage of labor supply, and in Australia, labor cost/site overheads increased due to loss of productivity on account of extreme weather conditions. Further, there was significant translation losses due to adverse movement in exchange rate of USD/INR and AUD/INR compared to March 22
• O&M constituted 9.4% of revenue in 2QFY23. O&M margins were impacted by projects
where O&M costs were incurred, however, revenue recognition has not commenced due to client delaying final handover. O&M margins were impacted by non-recurring costs of ~INR 10 crore. While we anticipate revenue to be recognized on a retrospective basis, we have provided for the costs incurred upfront
• Revenue and margin trajectory in EPC business anticipated to normalize from 1QFY24.
New site additions to O&M portfolio is likely to start contributing to top-line from 4QFY23
CONSOLIDATED BALANCE SHEET
INR Crore
Sep-22
Jun-22
Breakdown of Net Debt (INR Crore)
Sep-22
Jun-22
Sources of Funds Shareholders Funds Borrowings from Banks Total Application of Funds Fixed assets (including right to use assets) Core Working Capital Bank balance (including fixed deposit) Other assets/ (liabilities) Deferred tax and income tax balance GST and VAT balances (net) Total
338 1,313 1,651
47 (272) 483 954 146 294 1,651
596 403 999
41 (277) 272 547 137 279 999
Breakdown of Core Working Capital (INR Crore)
Sep-22
Jun-22
Current Assets Inventories
Receivables (net of LD provision)
Receivable days Advances to suppliers
Current Liabilities
Trade payables Payable days
Advances from Customers
Net Working Capital
1,375 4
1,332 158 39
1,647
1,353 124 294 (272)
1,738 4
1,621 122 113
2,015
1,759 115 256
(277)
Term debt
Working capital related debt
Total Debt
Less: Cash and Bank balance
Net Debt
700
613
1,313
(428)
885
-
403
403
(272)
131
Mix of receivables > 1 year as at Sep 2022 – Rs 362 crore
Others 27%
Related party 8%
(1)
Matter under NCLT 26%
Argentina 39%
(1) Related party receivables (~Rs 30 crore) is net of Rs 175 crore that the Company needs to pay back to the related party against advance received for Waste to Energy project
| NEW MOUs/ ORDERS ANNOUNCED
•
Sterling and Wilson Solar Solutions, Inc (SWSS), the US step down subsidiary signed a MOU with the Government of the Federal Republic of Nigeria, along with its consortium partner Sun Africa
• Contract signed for the BOS package comprising 4 blocks of proposed solar PV plant of NTPC at Khavda, RE Power Park, Rann of Kutch, Gujarat
• MOU is
for
the development, design,
and commissioning of solar PV power plants aggregating 961 MWp at five different locations in Nigeria along with battery energy storage systems (BESS) with total installed capacity of 455 MWh
construction,
• Aggregate capacity of 1,570 MW DC
•
Total value including O&M for 3 years is approximately INR 2,200 Crore (incl of tax)
•
•
Financing for these projects are under negotiations between US EXIM, ING and the Government of Nigeria
• Contract signed on 10 October 22
Transaction expected to consummate by 4QFY23
SWREL has announced ~2.5 GW of new orders / MOU in 1HFY23
| ORDER BOOK & PIPELINE
Unexecuted Order Value Movement
+1,858
-929
-1,610
+83
3,253
Gross UOV as on 12 October 2022
LATAM 2.4%
USA 8.9%
Australia 11.2%
2,654
UOV as on 31 Mar 2022
Forex adjustments
Order inflow Order exited in
2QFY23
Projects executed in 1H FY23
UOV as on 12 Oct 2022
FY23 Bid Pipeline remains robust
New order inflows are lumpy – Impacted by cyclicality and seasonality
India 77.5%
Europe 7.5%
MENA & Africa 14.5%
19.6 GW
India 47.6%
US & LATAM 19.7%
SEA 2.2%
Australia 8.5%
INR Cr
FY18
FY19
FY20
FY21
FY22
FY23
Q1
-
Q2
843
Q3
Q4
2,030
2,793
Total
5,666
346
1,482
1,195
1,417
4,440
1,629
1,057
1,070
987
3,353
1,601
221
-
254
1,858
-
-
1,820
244
4.743
6,774
719
1,858
SWREL is on track to achieve/exceed our FY22 guidance of ~USD 1 bn in new orders (ex-Group companies)
| WAY FORWARD - REGAIN THE POSITION OF WORLD’S LARGEST SOLAR EPC PLAYER
Industry Outlook
Target large EPC markets
Expand new businesses
Grow O&M Portfolio
• Unprecedented commodity super cycle over last 2 years coupled with COVID led to Solar Industry suffering huge losses and IPP’s deferring projects
• Significant consolidation observed
in the industry with stronger players expected to take a larger share of the market in the future
• Solar industry well poised to grow in long term as IPPs have huge plans for global capacity additions
• The global tariffs have already corrected upwards with the revision in prices and a lot of projects are expected to get finalized in FY23
• Reliance group’s investment in
Company has led to strengthening of Company’s balance sheet and increased confidence to customers, suppliers, bankers and other stakeholders
• Focus to grab large share of EPC
capacity additions in FY23 like US (23 GW), Europe (16 GW), Australia (3 GW) and India (16 GW)
• Round-The-Clock Renewable Energy Projects with Battery Storage are the future
•
Increased focus of countries globally towards Clean Hydrogen mission
• Natural Hydrogen mission
announced by Indian Govt to transform India into a global hub for green hydrogen production
• Pursue development activities In International markets to secure more EPC business
• Focus on large Solar PV + BESS projects in US, Europe and Australia
• Leverage client relationships to gain meaningful market share in these new businesses
• O&M market size to grow as more
solar capacity comes online
•
Increased focus on third party O&M in International markets through organic and inorganic route
• Provide enhanced value to customers through O&M differentiators like drone thermography, strong analytics and predictions, underground cable fault finder etc.
•
In-house learning and training to upgrade the technical skills of the team
| WAY FORWARD – DOMESTIC CAPACITY BUILDING UNDERWAY
SWREL has commenced preparations to scale domestic EPC team commensurate with the anticipated scale of work
t n u o c d a e H C P E c i t s e m o D L E R W S
467
Mar-22
1516
1049
467
Mar-23E
+120
+44
+42
+615
1,516
+195
+33
467
Domestic Headcount (Mar-22)
Design & Engg Procurement
Construction
Project Management
O&M
Corporate
Domestic Headcount (Mar-23E)
SWREL’s Domestic EPC team has been historically bidding and executing orders of ~1.5 GW annually
(1) Domestic EPC Headcount comprises both on-roll and contractual
| SOCIAL RESPONSIBILITY
As a responsible organization, we strive to ensure the well being of all our stakeholders, by placing sustainability at the heart of everything we do.
IDF CSR Award of Excellence 2018 For Participation in Resource Mobilization for Humanitarian Causes
s e i t i v i t c A R S C r u O
Skill & Livelihood
Disability
Environment
Concrete Homes
Health & Nutrition
Health
Natural Disasters
Tree Plantation
Education
Health & Nutrition
OUR PROCESSES SUPPORT
• Outreach • Growth • Encouragement • Collaboration • Engagement
• Communities • Employees • Regulators • Vendor Partners • Environment
For further information, please contact:
Company :
Investor Relations Advisors :
Sterling and Wilson Renewable Energy Limited
Strategic Growth Advisors Private Limited
CIN: L74999MH2017PLC292281
CIN: U74140MH2010PTC204285
Mr Sandeep Mathew Head – Investor Relations
Email: ir@sterlingwilson.com
www.sterlingandwilsonre.com
Mr Jigar Kavaiya / Mr. Parin Narichania
+91 9920602034 / +91 9930025733
Email: jigar.kavaiya@sgapl.net / parin.n@sgapl.net
www.sgapl.net