Suzlon Energy stock price crosses ₹50 mark for the first time since August 2011, up 440% in a year

Suzlon Energy witnessed another notable milestone today as its stock price surpassed the ₹50 mark during intraday trading, reaching ₹50.60 per share by gaining 4.9%. This follows a 5% upper circuit in the previous session, triggered by the announcement made by Union Finance Minister Nirmala Sitharaman during the presentation of the interim budget for the fiscal year 2024-2025 in Parliament on February 1. 

The finance minister proposed assistance for the installation of rooftop solar systems in 1 crore houses under the “Pradhanmantri Suryodaya Yojana."

Additionally, the finance minister announced viability gap funding for offshore wind energy, specifically up to 1 GW capacity. This move is particularly positive for industry players like Suzlon Energy operating in the wind energy ecosystem, spanning turbine manufacturing and Engineering, Procurement, and Construction (EPC) services.

Also Read: Budget 2024:Govt to provide viability gap funding for 1GW offshore wind capacity

Suzlon Energy's positive trajectory is further fueled by the company's successful order wins in the wind energy sector and its dedicated efforts to achieve debt-free status. These factors have instilled confidence among investors, contributing to a 440% surge in the company's share value over the past year.

Notably, the company is present in all windy states in India, and its wind order book is on an upward trajectory. It grew from 652 MW in Q4 FY23 to 3,157 MW as of January, providing good visibility of revenue.

With a stronger balance sheet and robust performance, the company can meaningfully participate in the ongoing energy transition. In Q3 FY24, the company reported a 160% jump in its consolidated net profit to ₹203.04 crore. In the same period last year, the company recorded a net profit of ₹78.28 crore.

Also Read: Budget 2024 Key Highlights: Income tax, infra, railways, EVs and more - 15 key takeaways from FM Sitharaman's speech

On a sequential basis, the net profit witnessed a notable increase of 52.62%, up from ₹133.15 crore in Q2 FY24. The revenue from operations for the reporting quarter showed a YoY improvement of 7.17%, reaching ₹1,552.91 crore compared to ₹1,448.97 crore in Q3 FY23.

During the quarter, Suzlon Energy successfully lowered its finance cost to ₹14.28 crore from ₹86.28 crore in the corresponding period of the previous year. In Q2 FY24, the finance cost stood at ₹43.70 crore.

Also Read: Budget 2024: Solar stocks Suzlon Energy, Tata Power, others shine as FM proposes rooftop solar aid for 1 crore homes

The operating profit during the December quarter jumped to ₹248 crore, up by 15.34% YoY. The operating profit margin expanded to 16%, reflecting a 100-basis point increase compared to the same period last year. However, on a sequential basis, the operating profit margin remained flat.

At 10:00 am, the stock was trading with a gain of 4.88% at ₹50.55 apiece. 

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