Pune-based renewable energy solutions provider Suzlon Energy Limited has reported net revenue of ₹13.47 billion (~$180.80 million) for the second quarter (Q2) of the financial year (FY) 2022, an increase of 18% compared to ₹11.35 billion (~$152.87 million) in Q1.
The company reported a net loss of ₹540 million (~$7.25 million) in Q2, compared to ₹790 million (~$10.61 million) in Q1.
The earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at ₹2.32 billion (~$31.16 million) in Q2 compared to ₹1.54 billion (~$20.68 million) in Q1. The EBITDA margin stood at 17.28%.
Ashwani Kumar, Chief Executive Officer, Suzlon Group, said, “We are happy to see that operations are smoothening further, and the impact of Covid-19 is reducing slowly but surely across the value-chain in India.”
The company installed 113 MW of wind projects in 1H FY22 and is focusing on servicing the order book of 1,091 MW. The wind energy sector as a whole had been subdued with an addition of only 610 MW in 1H of FY22.
According to the company’s investor presentation, Suzlon has orders from customers such as Adani Group, Apraava Energy, and Enel Group for 1,090 MW of wind turbines. The company also states that the hike in goods and service tax (GST) from 5% to 12%, coupled with the increase in the price of commodities and freight charges, will have a further adverse impact on the company’s margins.
Suzlon said that the divestment of its 75% stake in Suzlon Generators Limited to Voith Turbo Private Limited, which was expected to be completed by Q2 FY22, had been delayed due to procedural formalities. The transaction is now likely to be completed by Q4 FY22.
In July, the company announced a 12.34% jump in its net revenue in FY 2021. The net revenue stood at ₹32.95 billion (~$443 million) compared to ₹29.33 billion (~$394.3 million) during the same period a year before.
Suzlon announced that it had won an order from Apraava Energy (formerly CLP India) to develop a 252 MW wind power project. The project is in Sidhpur, Gujarat, and is expected to be commissioned in 2022. Suzlon will install 120 units of S120-140m wind turbine generators (WTGs) with a hybrid lattice tubular tower, with a rated capacity of 2.1 MW each.
Suzlon has a cumulative global installation of ~19 GW of wind energy capacity. It has 13 GW of wind energy assets under service in India and 1 GW outside India.
Arjun Joshi is a staff reporter at Mercom India. Before joining Mercom, he worked as a technical writer for enterprise resource software companies based in India and abroad. He holds a bachelor’s degree in Journalism, Psychology, and Optional English from Garden City University, Bangalore. More articles from Arjun Joshi.