Sterling & Wilson Renewable Energy Reports Strong Financial Performance in Q2 FY25

Sterling & Wilson Renewable Energy, a midcap engineering company, has recently announced its financial results for the quarter ending September 2024. The company has shown a very positive performance with a score of 27, which is an improvement from the previous score of 22 in the last 3 months.

The company’s Profit Before Tax (PBT) has seen a significant growth of 102.8% at Rs 1.83 crore, compared to the average PBT of the previous four quarters which was at Rs -64.44 crore. This shows a very positive trend in the near term for PBT. Similarly, the Profit After Tax (PAT) has also shown a growth of 107.9% at Rs 4.19 crore, compared to the average PAT of the previous four quarters which was at Rs -52.99 crore. This indicates a very positive trend in the near term for PAT.

The company’s ability to manage interest payments has also improved, with the Operating Profit to Interest ratio being the highest at 1.31 times in the last five quarters. The Net Sales have also shown a growth of 20.6% at Rs 915.06 crore, compared to the average Net Sales of the previous four quarters which was at Rs 758.84 crore. This shows a positive trend in the near term for sales.

Sterling & Wilson Renewable Energy has also shown the highest PBT and PAT in the last five quarters, indicating a positive trend in the near term for both. The company’s Earnings per Share (EPS) has also increased to Rs 0.18, showing an increase in profitability and creating higher earnings for shareholders.

However, the company’s Non Operating Income is 87.52% of the PBT, which is a cause for concern as it shows a high income from non-business activities. This may not be a sustainable business model for the company.

Overall, Sterling & Wilson Renewable Energy has shown a strong financial performance in the quarter ending September 2024, with positive trends in PBT, PAT, and sales. Investors are advised to hold their stocks, as recommended by MarketsMOJO.