Suzlon June quarter loss at Rs260 crore
New Delhi: Wind turbine maker Suzlon Energy Ltd on Tuesday reported a Rs260 crore consolidated loss in the April-June period, compared with a restated profit of Rs1,014 crore a year ago on account of lower income from operations.
Suzlon said in a stock exchange filing that income from operations declined 37% to Rs1,655 crore during the quarter under review from a year ago.
Earnings Before Interest, Taxes, Depreciation and Amortization margin (EBITDA margin), an indicator of operating profitability, stood at 10.4% for the June quarter, compared to 10% for the year-ago period. Finance costs fell to Rs304 crore in the first quarter of this financial year from Rs417 crore in the year-ago period.
Suzlon said that net profit for the previous comparable quarter was revised lower from the Rs1,047 crore as the company has adopted the new accounting standards called Ind AS that is compatible with International Financial Reporting Standards (IFRS).
The company reported a wind turbine order book of 1,205 MW for the current year. In the first quarter it has delivered equipment for 204 MW. First quarter typically represents about 10-15% of the entire year’s volumes, said the company.
“We are very optimistic on the growth of renewables in India. The country witnessed record renewable energy installations in FY16 and the industry will surpass it by over 30% in the current fiscal. Combined, wind and solar capacity has surpassed hydro capacity and is only next to coal-based capacity in India,” a company statement said citing group chief executive officer J.P. Chalasani.
Suzlon is now diversifying into other sources of renewable energy such as solar. It has won bids for 515 mega watt (MW) of projects and has signed power purchase agreements with distribution companies for 340 MWs. The projects are in Telangana, Rajasthan, Jharkhand and in Maharashtra.
“In FY17, we are focused on ramping up volumes by executing our strong order backlog, ensuring that we continue to maintain tighter control on our working capital and fixed costs, the statement said citing group chief financial officer Kirti Vagadia.