Suzlon’s net loss shrinks further in fiscal Q2

Nov 3, 2014 - Indian wind turbine maker Suzlon Energy (BOM:532667) managed to narrow its net loss to INR 6.56 billion (USD 106.6m/EUR 85.2m) in its second fiscal quarter through September, from INR 7.82 billion a year earlier.

The result also compares to a net loss of INR 7.56 billion in the previous quarter.

In a statement on Friday, Suzlon’s chairman Tulsi Tanti said that the Indian market is improving on certain policy changes and the company is “well positioned to gain in its core markets.” The list of other factors that enhanced Suzlon’s performance in the reporting period includes the revival of the accelerated depreciation (AD) scheme and the re-introduction of the Generation-Based Incentive (GBI) for wind farms, as well as access to low-cost funding.

The Indian firm booked a profit before depreciation, other income, finance costs, exceptional items and tax, also reported as EBITDA, of INR 1.14 billion against a loss of INR 311 million.

Gross margin grew to 32.5% from 27.3% as a result of better product and market mix.

Revenues in the July-September quarter increased to INR 53.78 billion from INR 48 billion a year back. Suzlon’s wind turbine generator division brought INR 52.9 billion of the total.

The Pune-based wind turbine manufacturer closed the first six months of fiscal 2014/15 with a net loss of INR 14.06 billion, shrinking from INR 18.41 billion in the year-ago period. Revenues improved to INR 100.5 billion from INR 87.05 billion.

Suzlon’s order book at the end of September amounted to 4.6 GW, which translates into a value of USD 6.3 billion (EUR 5bn).

(INR 100 = USD 1.626/EUR 1.299)

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