Pune-based wind turbine manufacturer Suzlon Energy Limited reported a net profit of ₹6.75 billion (~$91.6 million), a turnaround from last year’s net loss of ₹7.78 billion (~$104.4 million). The company attributed this to be a result of its debt restructuring process. The company had reported a net loss of ₹3.99 billion (~$54.5 million) in Q1 of FY 2021.

The net revenue at the end of the second quarter (Q2) of the financial year (FY) 2021 stood at ₹7.25 billion (~$97.6 million). This was a 9.7% drop from the same quarter last year, which saw around ₹8.03 billion (~$108.1 million) in net revenue.

However, the company’s gross profit spiked to ₹3.9 billion (~$52.5 million) during the quarter, up over 193% from Q2 of FY 2020, which saw only ₹1.33 billion (~$17.9 million) primarily due to higher provisions in Q2 of FY 2020.

  Source: Suzlon                                                 In crores

The company also posted that its earnings before income, tax, depreciation, and amortization (EBITDA) stood at ₹1.12 billion (~$15.1 million) during the quarter, up from a loss of ₹3.66 billion (~$49.3 million) in the same quarter last year. It attributed this increase to the higher margins and workforce optimization and operational expenditure (OPEX).

“In the Q2 results, we again see a clear improvement in EBIDTA over last year. Our focus on controlling operating and fixed cost as well as a reduction in finance costs is reflected in our profit and loss performance,” said Swapnil Jain, Chief Financial Officer (CFO), Suzlon Group.

In the first half (1H) of FY 2021, Suzlon’s net revenue stood at ₹12.37 billion (~$166.6 million), down about 24% from 1H of FY 2020, which saw ₹16.36 billion (~$220.3 million) due to lower volumes in wind turbine generator sales and the COVID-19 crisis.

However, its gross profit rose over 30% to ₹7.46 billion (~$100.5 million) in 1H of FY 2021 from ₹5.7 billion (~$76.8 million) in 1H of FY 2020. Gross margins also rose to 60.3% during the half from 34.8% in the same half last year. It attributed these increases to a change in the company’s revenue mix and higher provisions in Q2 of FY 2020. The company’s net profit attributable to shareholders also rose to ₹2.78 billion (~$37.4 million) in the first half of FY 2021, up significantly from a net loss of ₹10.82 billion (~$145.7 million) in the same period last year.

Source: Suzlon

Suzlon’s EBITDA during 1H of FY 2021 was also up at ₹2.03 billion (~$27.3 million), up 162% from last year’s loss of ₹3.24 billion (~$43.6 million) due to higher margins and better-optimized workforce and OPEX costs.

“Q2 of FY 21 was the first quarter post-closure of our debt restructuring process. This quarter marked the restart of our operations and entry back into the market amidst the constraints of COVID 19. I am encouraged by the financial performance of our operations and service business in these challenging times,” said Ashwani Kumar, Chief Executive Officer, Suzlon Group.

“Overall, despite the ongoing challenges, I remain confident of growing momentum in the coming months,” Kumar added.

In the first quarter of FY 2021, Suzlon posted revenues of ₹5.13 billion (~$70.1 million) in Q1 of FY 20201, a 39% decline compared to ₹8.33 billion (~$113.7 million) during the same period last year. The company registered revenues of ₹5.13 billion (~$70.1 million) in Q1 of FY 20201, a 39% decline compared to ₹8.33 billion (~$113.7 million) during the same period last year.

In July, Suzlon announced that it has completed restructuring its debt with the unanimous approval from its secured lenders. The company has been in a financially challenging position for the past year. Mercom also reported earlier that Suzlon had announced that it would sell two of its solar subsidiaries to Ostro Energy, a wholly-owned subsidiary of independent power producer ReNew Power.