Suzlon Energy reports Rs181-crore Q2 loss
31 October 2015
India's leading wind turbine manufacturer Suzlon Energy Ltd has reported consolidated loss of Rs181.10 crore for the quarter ended 30 September 2015.
Consolidated revenues for the quarter stood at Rs1,768 crore, while revenue for the first half of the fiscal ended 30 September 2015 stood at Rs4,374 crore.
Normalised EBITDA margin improved to 18 per cent in Q2 FY16 with EBITDA of Rs318 crore while normalised EBIT margin improved to 13.6 per cent in Q2 FY16 with EBIT of Rs240 crore.
Consolidated total income of the company, however, increased to Rs5,391.76 crore for the July-September 2015-16 quarter from Rs1,796.39 crore in the year-ago quarter, Suzlon stated in a stock market filing.
''The group has posted a loss after share in minority interest of Rs 181.10 crore for the quarter ended September 30, 2015 as compared to net loss of Rs 656.21 crore for the quarter ended September 30, 2014,'' the company said in a BSE filing.
According to the statement, on January 22, 2015, AE Rotor Holding B.V., a wholly-owned step-down subsidiary of the company, and its subsidiaries signed a binding agreement with Centerbridge Partners LP, USA to sell 100 per cent stake in Senvion SE.
The deal, which was subject to customary conditions, concluded on April 29, 2015 and therefore consolidated financial results of Senvion SE and its subsidiaries for the month of April 2015 have been considered for consolidation.
Accordingly, the consolidated financial results for the quarter and half year ended September 30, 2015 are not comparable with the prior period, it said.
''We continue to deliver on our sustainable growth and priorities outlined for FY16. We have efficiently capitalised on the opportunities in India. Governmentu2019s thrust on clean energy supported by conducive policy actions has stimulated demand for renewables in India,'' Suzlon group chairman Tulsi Tanti said.
''We continue to demonstrate solid operating performance in Q2 FY16 with steadily increasing volumes and improved normalised EBITDA margins of 18 per cent,'' Suzlon group chief financial officer (CFO) Kirti Vagadia said,
''Our strong order book of Rs 6,812 crore gives us a clear visibility going forward. We continue to control our fixed cost and net working capital in a disciplined manner.
''The significant improvement in our credit rating to investment grade has been a huge credibility booster to all our stakeholders,'' Vagadia added.
With new order intake of 401 MW in the first half of FY16, the company said its order book now stands at Rs6,812 crore.
Suzlon reported significant improvement in its credit rating with consolidated net debt (excluding FCCB) declining to Rs7,573 crore from Rs14,820 crore as of 31 March 2015.
CARE rating agency assigned a long-term credit rating of BBB- rating to Suzlon.
Suzlon received certification for its two updated products - S111, which received type certification thereby enabling serial production to commence; and the first S97-120m WTG with hybrid tower commercially commissioned in Rajasthan.
Total order intake stood at 401MW, which included 100.8MW repeat turnkey order from Orange Renewable for project in Andhra Pradesh - Suzlon will install 48 WTGs of S111-90m with rated capacity of 2.1 MW each; 105 MW orders from a mix of SME and PSU customers for projects in Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh and Tamil Nadu - Suzlon will install 50 WTGs of the 2.1 MW product platform.
Suzlon sees increased potential for clean energy projects with the union cabinet's announcing the national off-shore wind energy policy, which will unlock the vast potential of India's 7,600 km coastline for wind and wave energy generation.
Besides, Reserve Bank of India (RBI) has reduced interest rate by 50 basis point for wind power project loans and the Central Board of Excise and Customs (CBEC) has clarified the wind projects are eligible for central excise duty exemption for tower, nacelle, rotor, blades and wind turbine controller.
Suzlon said it will continue to build our wind project pipeline, focusing on the Indian market as well as North America, China and Latin America.