Suzlon Energy net loss widens to Rs1,212 crore

Mumbai: Suzlon Energy Ltd, the world’s fifth largest wind turbine manufacturer, reported a net loss for the March quarter that widened to R1,212.06 crore from R603.45 crore a year ago due to lower total income.
Total income fell 25.86%, from R6,645.05 crore a year ago to R4,926.38 crore.
The company had been expected to post a net loss of R546.4 crore, according to a survey of analysts by Bloomberg.
On a standalone basis, the firm made a net loss of R111.24 crore in the March quarter, compared with a net profit of R1,123.73 crore in the year-ago quarter. Total income fell 59.34%, from R1,008.24 crore a year ago to R409.97 crore.
“Our results for FY 2015 were largely impacted by working capital challenges, which have now been addressed. Our business operations are now adequately funded with requisite working capital facilities to ramp up volumes,” said Kirti Vagadia, group head of finance, Suzlon Energy.
The firm posted positive earnings before interest, taxes, depreciation and amortization (Ebitda) of R316 crore for 2014-15 against a negative Ebidta of `141 crore a year ago. Ebidta is a measure of operating profitability. “Our profitability and operating efficiency are enhanced as reflected by the increased Ebitda and improved net working capital ratios. The reduced leverage will lower the interest expense and principal repayment, providing more headroom to focus on business and order execution,” Vagadia said.
The total consolidated order book stood at 1.12 gigawatts, valued at $1.08 billion, the company said in a notice to BSE.
“We undertook various transformational steps such as the Senvion sale and equity infusion to de-leverage and embark on a growth trajectory,” chairman Tulsi Tanti said. “In FY 2016, our key priorities are to ramp up volumes, improve profitability, strengthen our customer-centric approach and enhance our market share,” he added.
In January, the firm sold Senvion to Centrebridge Partners LP for R7,200 crore as part of its strategy to hive off non-core businesses and reduce the debt burden of over R17,000 crore. Meanwhile, the board also approved venturing into solar renewables. Suzlon Energy on Friday ended at R25.20 on BSE, down 0.6%, while the benchmark BSE Sensex rose 1.17% to close at 27,828.44 points.
Source: Mint; 30 May 2015

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