Sterling and Wilson Renewable Energy Limited has informed the Exchange about Investor Presentation
January 18, 2024
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 Standalone and Consolidated Financial results of Sterling and Wilson Renewable Energy Limited (“the Company”) for the quarter and nine months ended December 31, 2023
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 a copy of the Investor presentation on the Unaudited Standalone and Consolidated Financial results of the Company for the quarter and nine months ended December 31, 2023.
Request you to take the same on record.
Yours faithfully, For Sterling and Wilson Renewable Energy Limited
Bahadur Dastoor Chief Financial 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
Bright
STERLING AND WILSON RENEWABLE ENERGY LIMITED
Investor Presentation – 3Q FY24 18 Jan 2024
Disclaimer
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 is not a prospectus, disclosure document, placement document or other offering document under any law, nor does it form part of, and should not be construed as, any present or future invitation, recommendation or offer to purchase or sell securities of the Company or an inducement to enter into investment activity in any jurisdiction. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. If there is any subsequent offering of any security of the Company, it will be made pursuant to separate and distinct offering documentation, and in such case the information in this Presentation will be superseded in its entirety by any such offering documentation in final form.
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.
Certain statements made in this Presentation may not be based on historical information or facts and may be “forward-looking statements” by reason of context, including those relating to the Company’s general business plans, planned projects and strategy, future financial condition and growth prospects, future developments in industry and competitive and regulatory environment. All forward-looking statements are based on judgments derived from the information available to the Company at this time. Forward-looking statements can be identified by terminology such as such as “potential,” "opportunity," “expected,” “will,” “planned,” "estimated", "continue", "on-going" or similar terms.
Forward looking statements are based on the current beliefs and expectations of the Company regarding future events, and are subject to various risks and uncertainties, many of which are difficult to predict. Actual results may differ materially from anticipated results due to factors beyond the Company’s control. Such risks and uncertainties include, but are not limited to, challenges to intellectual property, competition from other products, adverse litigation or government action, and changes to laws and regulations applicable to our industry. This Presentation also contains certain financial and operational information relating to the Company that is based on management estimates. These estimates are based on management's past experience and subjective judgment, and the manner in which such estimates are determined may vary from that used for the preparation and presentation of similar information provided by other companies engaged in the sector in which our Company operates. Neither the Company nor its affiliates or advisors or representatives nor any of their respective affiliates or any such person's officers or employees guarantees that the assumptions underlying such forward-looking statements or management estimates are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this Presentation or the actual occurrence of the forecasted developments.. 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.
About Us
| 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 17.5 GWp
O&M Portfolio 6.4 GWp
Global Manpower 2,039
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 28 countries Significant cost benefit and timely execution
E S U O H R E W O P
I
C T S E M O D
EPC and O&M of NTPC 3GW+ in 2 projects Executing one of India’s largest PV plants at Khavda, Gujarat
Awarded two projects of 1,570 MWp and 1,500 MWp in FY23
End-to-end “concept to commission” solar EPC
Market Leader
Leading Solar EPC solutions provider in the world
Leading Solar O&M player globally
No. 1 Solar EPC
player in Australia
Journey
| 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.
2023 Achieved a second consecutive mega order (1,500 MW) from NTPC
Why Us
| 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
Our Presence
| ACROSS THE GLOBE
UK
Spain
Italy
Jordan
Kazakhstan
USA 455 MWp
Morocco
Egypt
UAE
Vietnam
USA
Mexico
MENA 1,962 MWp
Mali
Nigeria
Saudi Arabia
Thailand
Oman
Kenya
Tanzania
Zambia
India
India 10,043 MWp
Singapore
Southeast Asia 323 MWp
Philippines
Latin America 575 MWp
Chile
Argentina
Namibia
South Africa
Rest of Africa 250 MWp
Offices in 28 Countries
Projects in 20 Countries
As of December 31, 2023
Australia
Australia 1,113 MWp
New Zealand
Financial Highlights
| 3Q FY 2024
Financials
| KEY HIGHLIGHTS FOR 3Q FY24
• Company has received new orders / LOIs in five projects worth ~INR 2,421 crore during the quarter including being declared L1 for one of the largest floating solar module projects in the country
•
The company has significantly de-leveraged the balance sheet during the quarter aided by
• We have received total orders / LOI in 11 projects worth INR
5,527 crore in 9MFY24
• Bagged our first international order in 3 years from Plenitude (part of ENI group) for a BOS project in Spain amounting to ~EUR 112 mn (inclusive of O&M for 3 years)
•
P&L of the company has remained steady despite challenges in Q3 arising from tight working capital conditions which affected ongoing operations
• Achieved positive consolidated EBITDA in 3QFY24
• Domestic EPC gross margins continue to operate within our
target range
• QIP inflows of ~INR 1,500 crore
•
•
Promoter indemnity receipts, and
Inflows from settlement with customers
• Consequently, net debt of the company has reduced to ~INR 27 crore as of December 31, 2023 from ~INR 2,079 crore as of September 30, 2023
•
Loans due for next 12 months have been paid off and/or funds earmarked against them
Financials
| CONSOLIDATED PROFIT & LOSS – 3Q FY24
INR Crore Revenue from Operations Gross Margin
Gross Margin %
Q3FY24 583 65 11.2%
Q3FY23 410 (30) (7.2%)
Q2FY24 759 66 8.6%
FY2023 2,110 (651) (30.9%)
Other Income
18
4
1
36
Recurring Overheads
Recurring Overheads %
81 14.0%
93 22.7%
71 9.4%
365 17.3%
Non-recurring Overheads
Forex gain / (loss)
Reported EBITDA EBITDA Margin %
EBIT
EBIT Margin %
PBT
PBT Margin %
PAT
PAT Margin
0
8
10 1.7%
6 1.0%
(61) (10.4%)
(62) (10.7%)
3
68
(53) (13.0%)
(59) (14.3%)
(95) (23.2%)
(99) (24.2%)
0
22
18 2.3%
14 1.8%
(50) (6.6%)
(54) (7.2%)
17
(26)
(1,023) (48.5%)
(1,038) (49.2%)
(1,178) (55.9%)
(1,175) (55.7%)
INR Crore Revenue from Operations - International EPC - Domestic EPC - Operation and Maintenance Total
Gross margin - International EPC - Domestic EPC - Operation and Maintenance Total Gross margin %
Q3FY24 Q2FY24 Q1FY24
FY2023
56 470 57 583
12 44 9 65 11.2%
141 567 51 759
(3) 57 12 66 8.6%
159 308 47 515
12 40 7 59 11.3%
1,400 516 190 2,107
(710) 50 10 (651) (30.9%)
Revenue has improved YoY but was subdued sequentially due to execution
challenges faced in Q3FY24 due to tight financial conditions.
Execution pace is expected to improve from Q4 onwards with
ample liquidity back in the system
Company has reported third consecutive quarter of positive gross margins
with higher revenue contribution from the domestic EPC segment.
Reported EBITDA has remained positive for second consecutive quarter
aided by forex gains
Domestic EPC margins continue to remain above 9%. Our unexecuted order book which largely comprises Domestic projects currently is likely to help sustain gross margins going forward
Financials
| CONSOLIDATED BALANCE SHEET – 3Q FY24
INR Crore
Sources of Funds
Shareholders Funds
Borrowings from Banks (net)
Application of Funds
Fixed assets (including right to use assets)
Core Working Capital
Deferred tax, direct and indirect tax assets (net)
Other assets / (liabilities)
Total
Breakdown of Core Working Capital (INR Crore) Current Assets
Inventories
Receivables
Receivable days
Advances to suppliers
Current Liabilities
Trade payables
Payable days
Advances from Customers
Core Working Capital
Dec-23
Sep-23
Breakdown of Net Debt (INR Crore)
Dec-23
Sep-23
982
27
1,009
61
(586)
483
1,051
1,009
(415)
2,079
1,664
64
(701)
469
1,832
1,664
Dec-23 1,840
1
1,672
262
167
2,426
1,331
232
1,095
(586)
Cash and Bank Balances
Add: Term debt
Add: Working capital related debt
Add: Commercial Paper
Add: BG Invocation Loan
Total Net Debt
Add: Suppliers Credit
Net Debt
(550)
428
-
100
-
(22)
49
27
(99)
1,418
337
97
277
2,030
49
2,079
Increase in shareholders’ funds is mainly on account of the INR 1,500 crore
QIP, reduced marginally by net loss during the quarter
Excluding suppliers credit, the company has turned net cash positive in December 2023 from over INR 2,000 crore net debt in September 2023. This has been achieved through proceeds from the QIP, indemnity inflows and proceeds from settlement with customers
Loans due for next 12 months have been paid off and/or funds earmarked
against them
Core working capital continues to remain negative at Rs 586 crore as at
December 2023
Outlook
| DOMESTIC EPC MOMENTUM GAINING TRACTION
India Order Inflow
4,387
4,515
INR Cr
5,000
4,000
3,000
2,000
1,000
0
713
FY22
FY23
9MFY24
Domestic EPC has remained profitable in challenging times
20.0%
0.0%
9.7%
10.5%
Gross Margin (FY23)
Gross Margin (9MFY24)
•
LOI for Module + BOS package of ~375 MW DC in 2QFY24
•
•
•
•
•
•
Received new BOS order of ~530 MW DC in 3QFY24
Received new BOS order of ~140 MW DC in 3QFY24
GIPCL BOS package of ~750 MW DC in 2QFY24
Received order of ~490 MW DC in 2QFY24
Received order of 319 MW DC in 1QFY24
Received order of 72.5 MW DC in 1QFY24
SWREL received new orders totaling ~INR 4,515 cr in 9MFY24 from the Domestic market
Outlook
| INTERNATIONAL ORDER SIGNED
•
•
•
SWREL bagged its first international order in 3 years with a BOS package for a 221 MWdc project in Spain
Through this project, SWREL has achieved a key breakthrough in the European solar market
The scope of work includes design, engineering, supply (excluding the PV modules and Transformer), construction, erection, testing, and commissioning
SWREL signed a 221 MW BOS order for ~EUR 112 mn including O&M for 3 years
Outlook
| MOU ANNOUNCED IN FY23
•
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 in September 2022
• MOU is for the development, design, construction, 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
• D&EPC agreement under negotiation
• Deal finalization awaited
SWREL signed a MOU with Nigerian government & Sun Africa to design and construct 961 MW
Outlook
| ORDER BOOK & PIPELINE
Unexecuted Order Value Movement
+5,527
-1,701
8,750
+10
4,913
Gross UOV as on 17 January 2024
Europe 11.3%
Australia, 0.9%
India, 87.4%
UOV as on 31 Mar 2023
Forex adjustments Order inflow
Projects executed in 9MFY24
UOV as on 17 Jan 2024
India Solar EPC bid pipeline* till FY25 is growing
New order inflows are lumpy – Impacted by cyclicality and seasonality
Private IPP 32.5%
40.0 GW
PSU 67.5%
FY20
FY21
FY22
FY23
FY24
INR Cr
Q1
Q2
Q3
1,629
1,057
1,070
-
-
3,353
1,601
221
-
466
254
1,858
2,640
364
2,165
2,421
Q4
987
1,820
244
Total
4.743
6,774
719
4,387
5,527
* Domestic bid pipeline refers to solar projects where BOS / BOS + module scope of work is anticipated to be awarded by the solar project developers Note: UOV includes a domestic floating solar project where the company has been declared L1
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