Suzlon shares rise after winning order from ReNew Wind Power
The 100.8MW project is scheduled for execution at the Bhesada wind site of Jaisalmer district in Rajasthan
Mumbai: Wind turbine maker Suzlon Energy Ltd said it has won a 100.8 megawatt (MW) order from ReNew Wind Power Ventures Pvt. Ltd.
A wind turbine approximately costs ₹ 6 crore per MW which would make this contract worth about ₹ 600 crore.
The project is scheduled for execution at the Bhesada wind site of Jaisalmer district in Rajasthan, the company said in a statement.
As per the agreement, Suzlon Energy will also oversee operations, maintenance and service of the wind site over the contracted period.
Shares of Suzlon Energy rose as much as 4.92%.
In the last four trading sessions, the stock rose by 36% while year-to-date it has almost tripled.
On Saturday, it reported its earnings which showed its Ebitda turned positive after a gap of seven quarters. Its net loss narrowed to ₹ 603.45 crore from ₹ 1,912.72 crore in the year-ago period, helped by cost reductions and restructuring of operations.
“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.
Income from operations rose 53.23% to ₹ 6,645.05 crore in the three months ended March from ₹ 4,336.44 crore a year ago. The company swung to an operating profit of ₹ 328 crore from an operating loss of ₹ 594 crore in the same period.
The debt-laden company has plans to raise about ₹ 1,000 crore from sale of non-core assets this fiscal year.
In January 2013, Suzlon Group has won approval for a ₹ 9,500-crore debt restructuring from its domestic lenders.
The lenders, a consortium of 19 banks, also agreed to enhance working capital facilities to the group by ₹ 1,800 crore and a 10-year deferred repayment plan.
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