Sterling and Wilson Renewable Energy loss widens to Rs 421 cr in March qtr

Sterling and Wilson Renewable Energy on Thursday reported a widening of its consolidated net loss to Rs 421 crore in the March quarter, mainly due to lower revenues.

The consolidated net loss of the company was Rs 127 crore in the quarter ended on March 31, 2022, according to a regulatory filing.

The revenue from operation slumped to Rs 88 crore during the quarter under review from Rs 1,071 crore a year ago.

The consolidated net loss in 2022-23 also rose to Rs 1,175 crore from a loss of Rs 916 in the previous fiscal year.

The company explained that the revenue was impacted during the (March) quarter due to a cost increase on account of certain cost provisions made, which impacted the percentage-of-completion and led to a revenue reversal in ongoing EPC (engineering procurement construction) projects.

For FY23, it stated that the revenue has decreased by 59.5 per cent YoY (year on year) due to lower contribution from ongoing EPC projects, where O&M constituted an 8.9 per cent of revenue in FY23.

The O&M (operation and maintenance) margins remain impacted by projects where O&M costs were incurred, however, revenue recognition has not commenced due to delay in final handover, it stated.

Gross margins remain suppressed primarily on account of International EPC projects, it stated.