Suzlon turns to fiscal Q2 profit, expects strong demand in India
Internal estimates by Suzlon. Source: Suzlon fiscal H1 results presentation.
Suzlon Energy Ltd (BOM:532667) reported a net profit of INR 2.38 billion (USD 34.5m/EUR 32m) for the second fiscal quarter (Q2) as April-September revenues grew 57% in annual terms.
The Indian wind turbine maker, which also has some solar projects in progress, on Friday said its performance has improved thanks to technological advancements and a conducive policy environment. The company sold 353 MW of wind equipment in Q2, which is up by 56% on the year and the best Q2 result in the past five years.
Results in INR billion
Q2 FY 2016/17
Q2 FY 2015/16
H1 FY 2016/17
H1 FY 2015/16
Gross margin (in %)
EBITDA (Pre FX)
Profit (loss) after tax
The H1 FY 2015/16 result includes one month of Senvion SA (ETR:SEN) performance so it is not directly comparable. Suzlon sold its stake in the German wind turbine maker on April 29, 2015.
The Indian company’s order book was strong at 1,136 MW at the end of September, with a value of INR 71.65 billion. CEO JP Chalasani said that demand on the domestic wind market will further grow thanks to the revised Renewable Purchase Obligation (RPO) trajectory, the approval on repowering policy, and the planned 1-GW wind auction for capacity connected to the inter-state transmission system (ISTS).
The wind market in India had a very good year in fiscal 2015/16 with over 3,400 MW installed and it is expected to grow by over 30% in the year through March 2017, Suzlon said.
At the end of Q2 the company had consolidated net term debt of INR 66.46 billion.