BackWhy Suzlon Energy shares plunged over 4% today - Explained
In July, the company's board approved raising ₹2,000 crore last month through a qualified institutional placement in order to repay debt and boost its growth capital.
PremiumShares of Suzlon Energy Ltd declined four per cent during today's session after certain reports suggested the wind turbine maker was looking to hit the public market this month to raise ₹1,500- ₹1,800 crore by selling shares to institutional investors.
Additionally, the company's board approved raising ₹2,000 crore last month through a qualified institutional placement in order to repay debt and boost its growth capital.
The stock hit an intra day low of ₹18.36, over five per cent lower than its opening of ₹19.34 apiece on the BSE. On an year-to-date basis, the stock has risen around 77 per cent. Shares of Suzlon Energy were last trading 3.88 per cent lower at ₹18.57 apiece on the BSE.
Suzlon Energy claims that it continue to maintain strict control on costs and in the process of further optimizing the organizational structure to drive improvement on the strong foundation set with over the last three years.
Suzlon Energy announced its April-June quarter results for fiscal 2023-24 (Q1FY24) on July 25, reporting a sharp decline of 96 per cent in consolidated net profit to ₹101 crore, compared to ₹2,433.33 crore in the corresponding period last year.
The renewable company's revenue from operations in the first quarter of current fiscal came in at ₹1,347.52 crore, registering a decline of two per cent, compared to ₹1,377.58 crore in the year-ago period.
The leading renewable energy solutions provider said its Wind Turbine Generator segment recorded a revenue of ₹803.28 crore for the quarter, compared to ₹831.82 crore.
Foundry and forging segment saw a drop in revenue to ₹111.53 crore from ₹120.44 crore. The operating & maintenance service segment saw revenue rising to ₹493.13 crore, compared to ₹453.81 crore. Suzlon recorded cumulative orders of nearly 1.6 GW in the June quarter.
‘’After a sustained effort to reduce debt in FY23 which has resulted in a healthier and sustainable balance sheet for the company our focus in FY24 remains on funding our operations and fulfilling our commitments to customers and other stakeholders,'' said Himanshu Mody, Chief Financial Officer, Suzlon Group.
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