Suzlon Energy posts first profit in 14 quarters on lower expenses, foreign currency gains

Mumbai: Wind turbine maker Suzlon Energy Ltd on Friday reported a consolidated net profit for the first time in 14 quarters for the three months ended June as expenses nearly halved and the company had one-time foreign currency gains.

Suzlon’s consolidated net profit of ₹ 1,047.41 crore in the first quarter of the fiscal compared with a net loss of ₹ 750.74 crore in the year-earlier quarter.

Revenue fell 43.8% to ₹ 2,627.71 crore in the quarter from ₹ 4,671.99 crore in the year-ago quarter. Total expenses fell 47.2% to ₹ 2,522.76 crore.

A Bloomberg poll had estimated a net loss of ₹ 465 crore on revenue of ₹ 1,268 crore.

Suzlon on Friday also announced the appointment of Kirti Vagadia as group chief financial officer effective immediately. This is the second time in a little over two years that Vagadia will return to the role.

The company’s board has accepted the resignation of chief financial officer Amit Agarwal, Suzlon said in a filing to BSE on Friday.

Agarwal was appointed chief financial officer in March 2013, replacing Vagadia, who was given the role of head of finance, Suzlon Group, including its wholly owned German subsidiary REpower Systems SE.

“Our Q1 performance reflects our turnaround journey. We introduced the next generation turbine, the S111-2.1 MW for the Indian market that is specially designed for low-wind sites, generating 20% higher energy compared to the S97. This year, we expect to supply 100 S111 turbines. Our pan-India presence and 1,700 customers across all segments give us the competitive advantage to enhance our market share,” chairman Tulsi Tanti said in a statement on Friday.

Suzlon in January had agreed to sell its German arm Senvion SE to American private equity firm Centerbridge Partners LP for €1 billion, or around ₹ 7,200 crore.

The company’s order book stood at 1,107 megawatts, valued at ₹ 6,839 crore, Suzlon said.

Suzlon’s consolidated net debt, excluding foreign currency convertible bonds (FCCB), had come down to ₹ 7,010 crore from ₹ 14,821 crore, the company said.

The results and the announcements were made after the market hours on Friday. Suzlon’s shares were unchanged at ₹ 21.90 on BSE on Friday from their previous close.