Suzlon founder eyes profit in fiscal 2015/16 - report

Nov 6, 2014 - The founder and chairman of Indian wind turbine maker Suzlon Energy (BOM:532667) believes the company will become profitable next fiscal year, he told the Economic Times.

Suzlon managed to narrow its net loss to INR 6.56 billion (USD 106.8m/EUR 85.4m) in its second fiscal quarter through September, from INR 7.82 billion a year earlier. The company will get very close to booking a profit in the final quarter of fiscal 2014/15, founder Tulsi Tanti said, as quoted by the newspaper.

In future, Suzlon’s domestic business may catch up with German arm Senvion SE when it comes to their share of group revenues. Tanti estimates that the current ratio is around 60:40, with the majority coming from Senvion. However, he expects it to change to 50:50 in view of the increasing opportunities on the Indian market. Suzlon's current order book amounts to 4.6 GW and is worth some INR 380 trillion.

Tanti also talked about interest cost at home, saying the government should lower it by 5%. He suggested that if that happens and if the Generation-Based Incentive (GBI) is doubled to INR 1.00, the cost of wind energy will fall enough to make it "lucrative for consumers".

(INR 10 = USD 0.163/EUR 0.130)

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