Suzlon’s Outstanding Debt Reaches ₹127.85 Billion

Renewable energy company Suzlon Energy Limited has disclosed an outstanding debt of ₹127.85 billion (~$1.8 billion), according to the company’s Bombay Stock Exchange (BSE) filing.

The company has filed the disclosure of defaults on payment of interest, repayment of principal amount on loans from banks and financial institutions in the filing.

The outstanding debt towards various lenders is inclusive of interest calculated by the company up to December 31, 2019.

The loans were given by a consortium of 18 banks led by the State Bank of India (SBI) along with the Indian Renewable Energy Development Agency (IREDA).


The company took secured the loans for its subsidiaries, namely, Suzlon Global Services Limited, Suzlon Gujarat Wind Park Limited, Suzlon Generators Limited, and Suzlon Power Infrastructure Limited.

The company’s total default amount is to the tune of ₹72.56 billion (~$1.01 billion), where the principal amount is ₹67.17 billion (~$936.56 million) and interest is about ₹5.39 billion (~$75.13 million).

Mercom reached out to the company for further details, but the spokesperson chose not to comment at this juncture.

In November 2019, Mercom reported that Suzlon Group reported a net loss of ₹7.78 billion (~$108.6 million) in Q2 of the fiscal year 2019-20. It was up 64% from the same period last year when the net loss was ₹2.8 billion (~$39.08 billion). The pre-forex (foreign exchange) operating performance, earnings before interest, taxes, depreciation, and amortization (EBITDA) reflected a loss of ₹2.43 billion (~$33.92 million) in Q2 2020. The company had noted then that it had an annual market share of around 39% in India. It also added that as of March 31, 2019, it had a cumulative market share of about 35% and that it had approximately 12.5 GW of assets under management in the country.

The revenue of the company for Q1 FY20 came to ₹8.33 billion (~$117 million). According to the company’s statement, it continues to witness a sectoral slowdown, owing to the prolonged industry transition to reverse auctions and policy uncertainty in a few states

In April 2019, Suzlon had announced that it will sell two of its solar subsidiaries to Ostro Energy, a wholly-owned subsidiary of independent power producer, ReNew Power. The two subsidiaries are Shreyas Solarfarms Limited (Shreyas solar) and Aalok solar farms Limited (Aalok Solar).

 

Image credit: Suzlon