Out of red, Suzlon sets fresh growth targets
16 May 2011
Pune-based Suzlon Energy, the world's third-largest wind turbine maker, which came out of the red in the last quarter of fiscal 2011, is targeting to increase its total sales by around 44 per cent to Rs24,000-26,000 crore this fiscal.
A recovery in the market in developing economies has put fresh wind into Suzlon's sagging sails. "Our revenues were around Rs18,000 crore in FY11 and we are targeting to grow them in this range in the next financial year," Suzlon chief financial officer Robin Banerjee told reporters in Mumbai on Saturday.
Suzlon, which had been reporting losses for consecutive quarters since December 2009, returned to profit in the March quarter with a net profit of Rs431.59 crore, against a Rs188.66 crore loss in the same period last year. Consolidated revenue for the quarter rose 20 per cent to Rs7,276.02 crore.
"We expect sales growth to come from India, developing markets and from offshore business next year. Developed markets may take some more time to recover," Banerjee said.
The company will focus on increasing the reach of new products, reducing product costs, cash generation, lowering working capital intensity, and maintaining low capital expenditure in 2011-12.
"Key initiatives focused on lowering operating costs, rationalising inventories and improving overall operating efficiency have delivered positive results," Banerjee said. Apart from low sales, the previous year's losses have been attributed to high cost and interest burden.