Policy changes help Suzlon cut Q1 FY 2014/15 net loss

Jul 28, 2014 - Indian wind turbine maker Suzlon Energy (BOM:532667) said Friday its net loss had narrowed to INR 7.56 billion (USD 126m/EUR 94m) in its first fiscal quarter through June from INR 10.61 billion a year back thanks to favourable policy changes at home.

Among the factors that helped Suzlon improve its performance are the re-introduction of the Generation-Based Incentive (GBI) for wind farms in August 2013 and the provision of access to low-cost funding. The planned revival by end-July of the accelerated depreciation (AD) scheme for wind farms is also seen as a growth factor in the sector.

Chairman Tulsi Tanti noted that these policy steps are expected to have an overall positive effect on the wind segment in India and added that Suzlon is “well positioned to tap these opportunities by leveraging on its strengths.” In the current fiscal year, the group will seek to boost domestic production, enhance its business efficiency and capital structure.

Suzlon reported a profit before depreciation, other income, finance costs, exceptional items and tax of INR 730.9 billion in April-June, versus a negative result of INR 3.01 billion a year earlier. Gross margin rose to 33.5% from 29.1%.

First-quarter revenue experienced a 21% year-on-year increase to INR 46.43 billion. The wind turbine maker’s order book at the end of June stood at 4.9 GW, which translates into a value of USD 7 billion (EUR 5.2bn)

(INR 100 = USD 1.664/EUR 1.239)
(USD 1.0 = EUR 0.744)

Choose your newsletter by Renewables Now. Join for free!