Suzlon Energy Limited has announced a 43% jump in its net revenue in the third quarter (Q3) of the financial year (FY) 2021 on the back of a ramp-up in its wind turbine generator business after debt restructuring.
The company’s net revenue stood at ₹9.38 billion (~$128.7 million) in Q3 2021, up around 43% from ₹6.54 billion (~$89.7 million) in Q3 2020. Its net loss attributable to shareholders also narrowed over 84% down to ₹1.17 billion (~$16.1 million) during the quarter from ₹7.36 billion (~$100.9 million) in the same period the previous year.
The Pune-based wind turbine manufacturer also reported a turnaround in its earnings before income, tax, depreciation, and amortization (EBITDA) to ₹1.36 billion (~$18.7 million) from a loss of ₹1.69 billion (~$23.2 million) in Q3 2020.
“In the Q3 results, we maintain a clear improvement in EBITDA over last year. As is evident from the results, our initiatives of cost optimization, organizational realignment, and ramping up execution are yielding the desired outcomes,” said Swapnil Jain, Chief Financial Officer, Suzlon Group.
“Our manufacturing operations have resumed in line with all precautions of the COVID 19 pandemic, and our service business continues to do well with wind farms under our service functioning without interruption,” he said.
In the first nine months (9M) of FY 2021, Suzlon reported a 5% decline in net revenue to ₹21.75 billion (~$298.4 million) from ₹22.9 billion (~$314.1 million) in the same period the previous year.
EBITDA during 9M 2021 saw a turnaround to ₹3.38 billion (~$46.4 million) from a loss of ₹4.93 billion (~$67.6 million) the previous year. Net profit attributable to shareholders stood at ₹1.61 billion (~$22.1 million) from a net loss of ₹18.19 billion (~$249.5 million) previously. The company cited its debt restructuring as the primary reason for the turnaround.
Suzlon also said that it continued to hold the largest market share of 34% of the country’s installed wind capacity and about 15% of India’s total installed renewable capacity. It also has the country’s largest fleet under maintenance with about 12.8 GW of projects.
In July 2020, Suzlon announced that it has completed restructuring its debt with unanimous approval from its secured lenders.
In Q2 2020, Suzlon had 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).
Nithin Thomas is a staff reporter at Mercom India. Previously with Reuters News, he has covered oil, metals and agricultural commodity markets across global markets. He has also covered refinery and pipeline explosions, oil and gas leaks, Atlantic region hurricane developments, and other natural disasters. Nithin holds a Masters Degree in Applied Economics from Christ University, Bangalore and a Bachelor’s Degree in Commerce from Loyola College, Chennai. More articles from Nithin.