The Hindu Business Line : Suzlon Energy net dips 54%

Mumbai, July 26 Global wind energy major, Suzlon Energy Ltd, has posted 53.82 per cent drop in net profits at Rs 89.4 crore for the quarter ended June 30, as against Rs 193.6 crore in the year ago period.

Net sales have also declined by 10.12 per cent to Rs 839.19 crore from Rs 933.77 crore.

The company’s share lost Rs 103.15 on BSE, down by 7.36 per cent to Rs 1298.75 from Rs 1401.90 on Thursday.

Slippage in schedule

Mr Tulsi Tanti, Chairman and Managing Director, Suzlon, said that in domestic market on (a standalone basis) the company lost business of 50 MW due to slippage in the schedule, due to monsoon related logistics problems, he said.

He said that due to rupee appreciation, the operating margin had been affected by 2 per cent. The company has hired more people which had also affected margin by 1 per cent.

On a standalone basis, the sales of wind turbines during the quarter had also declined to 263 MW from 301 MW sale recorded in the last year quarter. The EBIDTA has fallen to Rs 113 crore from Rs 239 crore and PAT to Rs 89 crore from Rs 194 crore.

The company has a combined order book position of 2882 MW (Rs 13,500 crore), with orders of 315.20 MW (Rs 1,710 crore) in the domestic market and 2,567 MW (Rs 11,790 crore) in the international market.

Mr Tanti said that last year on a consolidated basis, the margin was 39.5 per cent and this quarter it was 37.5 per cent, a decline of 2 per cent. The business model last year was only equipment supply and this year it was equipment supply plus EPC contracts, which affected the margins, he said.

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