Home / Companies / Suzlon shares rise after winning order from ReNew Wind Power

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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