Suzlon Registers ₹5.75 Billion Net Loss in First Quarter of FY19

Suzlon, a leading wind turbine manufacturer and renewable energy project developer, has reported a net loss of ₹5.75 billion (~$83.67million) in the first quarter of FY19, ending June.

In the same quarter of last year, it had registered a net profit of ₹480 million (~$1.22million).

For Q1 FY19, the company posted a revenue of ₹ 12.72 billion (~$185.25 million). Its consolidated business EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) came out to ₹770 million (~$11.21 million) with a margin of 6.1 percent. The company claims that the reduced numbers are due to this being a seasonally low volume quarter.

“We have an order book of 1,134 MW. Suzlon is well positioned to cater to the growing market, with its slew of newly launched technologically advanced products offering a higher Plant Load Factor (PLF) and a reduced Levelized Cost of Energy (LCoE). We are also focusing on select profitable international market,” said J P Chalasani, Group CEO at Suzlon.

In a media statement, Suzlon said it delivered 155 MW of wind projects in Q1 FY19 ,despite being a seasonally a low volume quarter.  It also has a backlog of projects worth 1,134 MW to date.

Suzlon has a gross term debt of ₹71.36 billion (~$1.04 billion) and a working capital debt of ₹34.71 billion (~$ 505.50 million).

Suzlon Group CFO Kirti Vagadia said, “To ensure competitiveness under the new bidding regime, we remain focused on optimizing costs across the board, and further reducing our working capital levels. While we have withdrawn our FY19 operational guidance in light of the prolonged transition, we continue to maintain our debt reduction target of 30-40 percent by the end of FY19.”

Recently, Mercom reported that in its annual financial results for FY18, Suzlon declared a net loss of ₹3.84 billion (~$55.92 million). The consolidated net term debt (excluding FCCB) of Suzlon stood at ₹60.37 billion (~$879.20 million) while its working capital debt has been valued at ₹38.89 billion (~$565.50 million).

Suzlon is also intending to re-enter the international markets, buoyed by favourable global market circumstances.

Domestically, Suzlon secured a repeat order of a 96.6 MW project from renewable energy project developer ReNew Power for the development of a wind project in the state of Karnataka In February 2018.

Earlier, Suzlon also commissioned 340 MW of solar PV projects in Telangana (210 MW), Rajasthan (60 MW), and Maharashtra (70 MW) with the through a combination of joint ventures, and the formation of Special Purpose Vehicles (SPVs) with various partners.

Nitin is a staff reporter at Mercomindia.com and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer