Suzlon’s consolidated profit falls

Suzlon’s consolidated profit falls
PTI
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First Published: Tue, Jan 29 2008. 11 48 PM IST
Updated: Tue, Jan 29 2008. 11 48 PM IST
Mumbai: India’s biggest maker of wind-turbine generators, Suzlon Energy Ltd, posted a lower third quarter (Q3) consolidated profit, mainly on high interest costs related to its acquisitions of Germany-based Repower Systems AG and Belgium’s Hansen Transmissions International NV.
Suzlon earned Rs151.69 crore on a consolidated basis, compared with Rs174.39 crore in the corresponding period last year. Its consolidated income?stood?at?Rs3,242.29 crore, against Rs1,939.29 crore in the year-ago quarter, the company said in a filing to the Bombay Stock Exchange.
The firm said its order book stood at Rs17,107.41 crore— Rs14,702.74 crore for exports and Rs2,404.67 for domestic sales—as on 25 January.
The stand-alone net profit of the firm jumped almost 92% to Rs338.18 crore for Q3, against Rs176.23 crore in the year-ago period. On the same basis, total income rose almost by half to Rs1,683.16 crore.
“The company’s outlook is robust with a strong order book,” said Krishnakant Thakur, an analyst at Edelweiss Capital Ltd.
Suzlon chairperson Tulsi Tanti has spent $2.5 billion (Rs9,850 crore) buying European wind-turbine and parts makers, betting that tighter emission rules will spur demand for wind power. The European Union said its members must get as much as 49% of their energy from renewable sources by 2020.
“Our largest market will be Europe,” Tanti said. “Now, our focus is consolidation. We don’t have plans to raise money. Our need for best technology we have met by acquiring Repower Systems AG and Hansen.”
On Tuesday, Suzlon gained 8.43% to close at Rs341.15 on the Bombay Stock Exchange.
Bloomberg and Reuters contributed to this story.
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First Published: Tue, Jan 29 2008. 11 48 PM IST