Indian wind turbine manufacturer Suzlon Energy posted a net profit of ₹564.7 million (~$6.95 million) during the second quarter (Q2) of the financial year (FY) 2023, an increase of 555% compared to a loss of ₹124 million (~$1.53 million) in the same period last year.

The profits, however, decreased 98% sequentially.

The increase in profits YoY during the quarter was mainly through exceptional gains, primarily on account of the conversion of financial instruments pursuant to refinancing. The refinancing cut the finance cost by half – from ₹1.84 billion (~$22.65 million) during the same quarter last year to ₹920 million (~$11.33 million) in the current quarter.

The company also reduced its debt by ₹584 billion (~$7.23 billion) through the rights issue proceeds. The exchange loss figure stood at ₹380 million (~$4.68 million), a decrease of 192% compared to a loss of ₹410 million (~$5.05 million) during Q2 FY 2022.

The company reported net revenue of ₹14.43 billion (~$177.63 million) for Q2 FY23, a year-over-year (YoY) leap of 7% from ₹13.47 billion (~$165.82 million). Revenue increased by 4% quarter over quarter (QoQ).

Suzlon’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the period totaled ₹2.08 billion (~$25.61 million), up 8% YoY. The numbers increased by 12% from ₹1.85 billion (~$22.77 million) in the last quarter.

The net volume increased by 4.5% to 162 MW compared to 155 MW during the same period last year. The figures grew by 7% compared to 151 MW in the previous quarter.

The company has over 13.6 GW of wind energy assets under service in India, making it the third-largest operations and maintenance company in the Indian power sector. Suzlon also has 5.9 GW of installed capacity outside India.

Speaking on the results, Ashwani Kumar, Chief Executive Officer of Suzlon Group, said, “We have closed a very satisfying Q2 despite various challenges. While we continue to improve our performance, the highlight for us has been the order intake in recent months. In line with our commercialization plans, we recently dispatched the first set of blades of our newly launched larger turbines in the 3 MW to 3.15 MW series customized for Indian wind conditions with a rotor diameter of 144 meters and an increased generation of ~45% over the S120. While our order book stood at 759 MW as of September 30, 2022, we have subsequently added new orders of nearly 193 MW.”

First Half FY23

The company’s net profit in 1 H FY23 stood at ₹24.89 billion (~$306.39 million), compared to a loss of ₹87.6 million (~$1.08 million) during the same period last year.

Suzlon’s net revenue grew by 13% to ₹28.08 billion (~$345.66 million) during 1H, compared to ₹24.82 billion (~$305.53 million) during the same period last year.

EBITDA for the period totaled ₹3.93 billion (~$48.38 million), up 0.2% YoY.

The company’s wind firm order book stood at 759.2 MW at the end of September.

The net volume rose by 15% YoY to 312 MW from 271 MW.

Last month, Suzlon announced raising ₹12 billion (~$145.80 million) through a rights issue of 2.4 billion partly paid-up equity shares. The issue was oversubscribed 1.8 times.

The company posted net revenue of ₹13.78 billion (~$173.52 million) for Q1 FY23, a 21% YoY jump from ₹11.35 billion (~$142.92 million).