They have guided for EBITDA margins of 9-10% in the medium to long term. How long it will take them to reach there, only time will tell. EBITDA margin has shown improvement in last 2 quarters and as execution picks up from 2Q onwards (as said by management), operating leverage shall kick in and we should see EBITDA margins inching higher.
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I see everywhere the margins for EPC business is 15-16% for even smaller companies.
Waaree, Gensol all the EPC divisions have better margins even though SW solar will have the biggest revenues of 9000 crore still the expected margins are 7-8%.
Maybe because Waaree and Gensol are doing module manufacturing also and placing manufacturing business under EPC.
More thoughts appreciated.
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I was surfing on some Nigerian websites to know more about the EPC order S&W won. Got this new snippet, saying the Energy ministry got backing from the US for its solar needs. It has mention of Sun Africa, which is the main beneficiary of this Order. And i think its a US company. Does this connect some dots?
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Assuming a bulk of SW’s new orders is going to come from Reliance, module prices shouldn’t really matter much as it would be a Free Issue Material from RIL right? In that case their margins could actually improve as the share of reliance orders increases in the next FY?
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Not sure, If 8% ebitda margin improves to 9% then not much effect but yeah if it goes till 11% or 12%, that will be substantial increase in profitability.
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This is the same project.
What is the eps estimate for FY25?
Revenue, - 8,000
GP - 800 Cr
EBITDA - 450-500 Cr
PAT - prob - 400 Cr. (no tax, Interest only on BG & limits,)
It seems ittle difficult to get the topline of 8000 cr.
This is management guidance… 8k is easy… H2 will be easy 5k
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it seems really diffcult after the Q1. According to me they will be able to make 6000cr of
topline.
If I may ask, what is the source of information?
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Earlier it comes into reliance fold better it is for us share holders. They were creating a mess by continuously selling every time the stock price would increase. This does not help any one. I pray Reliance buys out the remaining shares outright and allow the market dynamics to determine the price.
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@All - Concerns seems to be addressed and the overhang is out from SW solar.
Technically the shakeout is also done. Now the real move on the upside should start. If the orders start coming in as well, it will be an icing on the cake
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the long term debt of SW solar was of the order of 240 cr only till march.
What is the 750 crore debt which was supposed to be paid of?
I saw there were some unexplained huge current liabilities in the balance sheet.
(b) Other current liabilities 28 946.31
Is this the one for Data center?
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My understanding is that SP group wanted to invest in the SW data center business (not related to SWRE) through the current stake sale.
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Okay i get it now.
All company names are prefixed with SW so got confused.
Anyway the concerns on this stock are not really on the how much stake sale are promoters doing.
Problem is there are lot of small small pending issues.
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Post Share selling happened in September end i.e 6.94% stake sale of SP group.
On 1st October SP group further pledged 1% holdings
47C9F881_5CB8_4E12_91BA_09A6A74099A7_150736.pdf (bseindia.com)
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Sterling and Wilson Renewable Energy’s share price has recently dropped significantly, falling 23.5% over the past month. This decline is primarily attributed to the promoters selling a substantial stake in the company, which has raised concerns among investors about the company’s future prospects. On September 28, 2024, the promoters sold shares worth Rs 1 billion, with Shapoorji Pallonji holding a 12.7% stake and Khurshed Yazdi Daruvala holding 1.5% as of June 30, 2024.
The ongoing reduction of promoter holdings—from 69% in June 2023 to 52.9% by June 2024—has exacerbated investor anxiety, leading to further selling pressure. Promoters typically have insider knowledge of a company’s value, so their stake sales can signal a lack of confidence in future growth.
Despite these challenges, Sterling and Wilson is focusing on expanding its operations and maintaining a strong presence in both domestic and international markets. The company aims to achieve Rs 80 billion in revenue this fiscal year and is optimistic about growth in solar installations due to increasing demand for renewable energy and government initiatives.
The company’s financial health remains robust, with decreasing net debt and a growing operations and maintenance (O&M) portfolio, which is expected to provide stability over the next 12-18 months.
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