Suzlon gains 10% as company posts operating profit after seven quarters

Mumbai: Wind turbine maker Suzlon Energy Ltd’s shares rose as much as 10% after its earnings before interest, taxes, depreciation, and amortization (Ebitda) for the March quarter turned positive after a gap of seven quarters.

Its net loss for the quarter ended 31 March declined 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, Suzlon’s group head of finance. Ebitda is a measure of operating profitability while 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 compared with ₹ 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 the sale of non-core assets this fiscal year.

At 10:18am, Suzlon Energy shares were trading at ₹ 24.15 on BSE, up 9.97% from their previous close, while India’s benchmark Sensex rose 0.4% to 24,338.39 points.