Sterling and Wilson Solar, India’s leading Solar EPC company and among global selectors, saw fit to inform the stock exchanges of a major impact on their business on May 16.
In its interview, the company highlighted three issues that it believes will affect its boundaries and profits for the entire year.
Following the payment of money to one of the Company’s subcontractors in a particular area, the Company was required to appoint other subcontractors at a higher cost due to limitations and other implications from the ongoing Covid-19 epidemic. This has also led to an increase in the duration of the project and the subsequent advances that are in this particular geography.
The global Solar EPC industry is affected by the fact that many module manufacturers are refusing to honor past price contracts due to the significant increase in module costs. Some of the Manufacturing Company modules have also fasted to honor their contractual obligations and have sought to significantly increase the module prices in the two projects.
Continued increase in prices and cost of remaining assets at all times.
The stock exchange, too, has asked for clarification in terms of a certain amount from the firm, which the company, in response to yesterday, has transferred Rs 160- Rs 170 crore.
For Sterling and Wilson Solar, part of the Shapoorji Pallonjee Group, this is the latest comment on a series of unfortunate incidents since their shares were released, back in August 2019. Released at a high premium at a cost of Rs 780, the company had to go through a series of problems in this company, it has lost the same set limits and constraints on the part of the contracts. Some notable orders win have helped, but not enough to save tank stocks, now less than Rs 240, in a growing market.
While the company has made this disclosure as a publicly listed company, it is not the only one that has been hit by an unusual situation for the past 6 months and more. At the EPC level, the stress is real, and it is set to continue, as many contracts closed in Q3 when work has not really started may need to be negotiated again, following a decline in the price of modules, and cancellation of suppliers.
Source: Saur Energy