India's Suzlon posts USD-47m loss for Q1 FY 2019/20

Wind farm in Brazil. Author: Suzlon Group. License: All Rights Reserved.

August 14 (Renewables Now) - Debt-laden Indian wind turbine maker Suzlon Energy Ltd (BOM:532667) today posted a lower attributable net loss for the fiscal first quarter through June 2019 compared to a year earlier, when its results were burdened with a significant exchange loss.

Net loss attributable to Suzlon’s shareholders decreased to INR 3.35 billion (USD 46.9m/EUR 42m) from INR 5.73 billion in April-June 2018, with net revenue falling to INR 8.33 billion from INR 12.72 billion mainly due to low volume. During the period, the company delivered just 19 MW compared to 155 MW a year back.

CEO J P Chalasani noted that the sector continues to experience a slowdown because of “the prolonged industry transition to the bidding regime and policy uncertainty in few states.”

The table below gives more details about Suzlon’s performance in the first quarter of fiscal 2019/20.

Figures in INR, except percentages Q1 2019/20 Q1 2018/19
Net revenue 8.33bn 12.72bn
Gross margin (%) 52.5 38.5
EBITDA (loss), pre FX 610m 770m
EBITDA margin, pre FX (%) 7.4 6.1
Net profit (loss), pre FX and excluding items (3.09bn) (3.21bn)
Net profit (loss) attributable to shareholders (3.35bn) (5.73bn)

In mid-July, Suzlon failed to make a USD-172-million (EUR 154m) payment on convertible bonds with a total value of USD 546.9 million. The group’s consolidated net term debt amounted to INR 77.51 billion at the end of June 2019, with working capital debt reaching INR 40 billion.

“We are committed and tirelessly working towards debt resolution and fixing the capital structure at a sustainable level and are exploring various funding options like raising fresh equity, disposal of subsidiaries, etc,” said CFO Kirti Vagadia, who noted that company operations are at a sub-optimal level after the bond default.

(INR 10 = USD 0.140/EUR 0.125)

(USD 1.0 = EUR 0.895)

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