Shares of Sterling and Wilson Solar gained over 6% in early trade Friday after the company said it signed an order of 106.71 MW solar project worth Rs 462 crore in Chile, work for which is expected to begin in Q4 FY 2021.

The stock opened with a gain of 5.03% at Rs 235 and later touched an intraday high of Rs 239, rising 6.82% against the last closing of Rs 223.75. Sterling and Wilson stock later erased early gains and fell 2.97% to the touch an intraday low of Rs 217.1 on BSE.

Share price of Sterling and Wilson Solar has lost 6.78% in two days. Market capitalisation of the firm stood at Rs 3,525.51 crore as of today's closing session.

Sterling and Wilson Solar shares stand higher than 100 and 200-day moving averages but lower than 5, 20 and 50-day moving averages.

"Sterling and Wilson Solar has signed an order of 106.71 MW worth USD 62.6 million in Chile. The order has been received from a global independent power producer (IPP), work for which is expected to begin in Q4 FY 2021," the company said.

"We are excited to win our fifth project in Latin America. Our continuous focus in the market has reaped rich benefits with these prestigious project wins," Sterling and Wilson Solar Director and Global CEO Bikesh Ogra said.

SWSL, a Shapoorji Pallonji Group company, has a strong presence in the region with one project of 93.3 MW in Argentina and three projects of 588 MW under construction in Chile.

On Wednesday, the company reported 67% drop in its net profit to Rs 17.22 crore in the June quarter against Rs 46.01 crore in the quarter ended June 30, 2019, mainly due to lower revenues.

The total income of the company fell to Rs 1,099.38 crore in the quarter under review, from Rs 1,309.34 crore a year ago, the company said in its BSE filing.

Sterling and Wilson's stock closed 1.83% lower at Rs 219.65 on BSE.

Expressing his views on the development, Amarjeet Maurya, AVP - Mid Caps, Angel Broking said,"Company has signed an order of 106.71 MW worth USD 62.6 million (~Rs462cr) in Chile. The order has been received from a global independent power producer (IPP), work for which is expected to begin in Q4 FY 2021. The company already has a strong presence in the region with one project of 93.3 MW in Argentina and three projects of 588 MW under construction in Chile. This is a positive development for the company which would support revenue growth for FY21."

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