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Suzlon Sep quarter standalone profit slumps

Suzlon Sep quarter standalone profit slumps


Mumbai: Suzlon Energy Ltd, the world’s No. 5 wind turbine maker, said its standalone quarterly net profit tumbled 95.2% on foreign exchange losses and provisioning for faulty blades.

Suzlon said net profit in the September quarter fell to Rs16.98 crore ($3.4 million) from Rs3.56 billion reported a year ago.

Total income rose to Rs22.34 billion from Rs16.95 billion.

Suzlon said currency losses on outstanding foreign loans and hedging were Rs2.3 billion in the quarter. It also set aside Rs47.77crore rupees for restoration of faulty wind turbines and blade failures in the United States.

It said oustanding order book stood at Rs140.52 billion, compared with Rs164.9 billion at the end of July.

Producers of renewable energy equipment such as Suzlon were riding a boom as high oil prices and climate change concerns prompted countries to crackdown on greenhouse emissions, but the credit crisis is forcing developers to re-think projects.

Suzlon shares have been hammered 40.5% over the last week after a large blade attached to a wind turbine supplied by it cracked and fell off on a corn field in the United States.

A unit of Edison International had cancelled orders for 150 turbines in June following cracks in blades.

In a separate statement, the company said it had dropped plans to invest in a tower manufacturing facility reducing its capital expenditure plan to Rs6.69 billion. It did not elaborate.

On Monday, the company had dropped plans for a $360 million rights offer citing falling markets.

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