BackSuzlon Energy Q4 net loss narrows to Rs603.45 crore
The company swung to an operating profit of Rs328 crore from an operating loss of Rs594 crore during the period
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Mumbai: Wind turbine maker Suzlon Energy Ltd said on Friday that its net loss for the quarter ended 31 March narrowed to Rs603.45 crore from Rs1,912.72 crore in the year-ago period, helped by cost reductions and restructuring of operations.
Income from operations rose by 53.23% to Rs6,645.05 crore in the three months from Rs4,336.44 crore a year ago. The company swung to an operating profit of Rs328 crore from an operating loss of Rs594 crore in the same period.
For the full year ending 31 March, Suzlon Energy’s net loss narrowed to Rs3,519.97 crore from Rs4,723.96 crore for the financial year ended 31 March 2013.
“FY14 has been an important year for Suzlon, wherein we achieved significant progress by improving our business efficiency. The group is now transiting from a restructuring mode to a growth phase given the opportunities due to strong industry outlook," said chairman Tulsi Tanti.
The company turned Ebitda-positive and Ebit-positive after a gap of seven quarters, said Kirti Vagadia, group head of finance. Ebitda is short for earnings before interest, tax, depreciation and amortisation—a measure of operating profitability; Ebit stands for earnings before interest and tax.
“Our Q4 Ebitda shows significant improvement by Rs923 crore on YoY (year-on-year) basis. We continue to improve on net working capital which is at 3.6% of revenue as against 13.6% in FY13," Vagadia said.
The company’s creditors on 24 January, 2013, approved a Rs9,500-crore debt restructuring plan, agreeing to enhance working capital facilities by Rs1,800 crore and backed a 10-year back-ended repayment plan.
Early this month, Suzlon Energy, the world’s fifth largest wind turbine maker, announced a cash-less restructuring of its existing foreign currency convertible bonds (FCCBs) worth $485 million for five years, after nearly two years of complex negotiations with bondholders.
The Pune-based company has four different series of FCCBs issued to investors.
Suzlon had failed to repay $209 million of debt on 11 October 2012 after bondholders rejected its request for a four-month extension. The default was the biggest on convertible bonds by an Indian company.
As a part of the restructuring, Suzlon Energy will issue about $485 million of new bonds that will have a maturity period of five years and one day from the date of issuance.
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