Sterling and Wilson Solar (SWSL)'s consolidated net profit declined 65.9% to Rs 16.42 crore on a 14.2% fall in net sales to Rs 1,067.90 crore in Q1 June 2020 over Q1 June 2019.
On the segmental front, revenue from Solar EPC Business stood at Rs 1,004.44 crore (down 16.9% YoY) while the revenue from Operation and Maintenance Services was at Rs 63.46 crore (up 77.2% YoY) in the June quarter.
Profit before tax declined 74.4% to Rs 19.54 crore in Q1 FY21 over Q1 FY20. Current tax expense slumped 96.2% year-on-year (YoY) to Rs 1.19 crore during the quarter.
In a separate filing, SWSL said that The Shapoorji Pallonji group is unable to repay pending dues to the tune of over Rs 1,000 crore that were due in June and September. Of the outstanding loan amount of Rs 2,563 crore (principal amount of Rs 2,335 crore and interest of Rs 228 crore), the promoters have already repaid Rs 1,500 crore until March 2020. The promoters had committed to facilitate the payment of the balance amount by 30 September 2020.
SWSL said that it has been paid an amount of Rs 103 crore as on date out of June 2020 installment of Rs 500 crore, and that the promoters have sought time till September 2021 to repay the rest of the dues.
The promoters vide their letter dated 15 September 2020 have informed the board that the balance amount of Rs 397 crore of June 2020 installment could not be paid due to the reasons as are explained to the board from time to time, SWSL said.
In view of the above, the promoters have offered a total security on various assets aggregating to approximately Rs 1,200 crore, the company added.
The audit committee and the board of directors at its meeting held on 15 September 2020 approved further extension of time upto 30 September 2021 to facilitate funding for the repayment of part of June and September 2020 installments.
The committee also decided to levy an additional interest spread of 400 basis points per annum over the average interest rate on borrowings as against the interest spread of 100 basis points per annum levied earlier. The promoters will pay interest on quarterly basis.
SWSL, a Shapoorji Pallonji group company, is a global pure-play, end-to-end solar engineering, procurement and construction (EPC) solutions provider.
Shares of SWSL shed 0.81% to Rs 233.15. It traded in the range of 218 and 244.35 so far during the day.
In the past one year, the stock has tumbled 62.87% while the benchmark S&P BSE Sensex has added 5.19% during the same period.
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