Suzlon announces Q1 FY21 Results

Suzlon Group, India's largest renewable energy solutions provider, announced its first quarter results for financial year 2020-21 (Q1 FY21).

- Revenue of Rs.513 crores in Q1 FY21
- EBITDA of Rs. 91 crores in Q1 FY21 and EBITDA margin of 17.7% in Q1 FY21

V R Tanti, COO, said, "The Covid-19 pandemic and the implementation of the Debt Restructuring which was completed on 30th June 2020 impacted our WTG business in Q1. We have started securing new orders in Q1 and have a healthy order book of 867 MW. Despite the challenges of the Covid-19 lockdown, our Operations and Maintenance Service (OMS) business continues to deliver good performance and SEForge our forging and foundry business has also performed well. We have geared up our manufacturing plants and project sites as per the new social distancing and safety guidelines of the Government and are all set to begin full-fledged operations. The Government's focus on 'Aatmanirbhar Bharat' will boost domestic manufacturing in the Wind sector and definitely benefit Indian Wind Turbine manufacturers like us. At an industry level there have been several positive developments with a slew of policy announcements. Power ministry announced the extension of waiver of Inter-State Transmission System (ISTS) charges and losses on supply of power generated from wind and solar sources until 30th June 2023. No ISTS charges would be levied for 25 years and the same is also applicable to Captive power projects, which will open up a new market segment."

Swapnil Jain, CFO, said, "In the Q1 results we see a clear improvement in EBITDA over last year, which is a testimony of the success achieved in controlling our fixed costs. As the Debt Resolution Plan was implemented at the end of Q1 FY21, the impact of the reduction in interest cost will be seen in the coming quarters. However, part of interest cost on securities issued to the Lenders would keep getting charged to statement of profit and loss in future years which is notional. The company is now strongly positioned to resume the WTG business and execute our order book. We have also reorganised the business to suit the new market paradigm, which has helped in significant reduction of our break-even levels making us even more competitive."

Suzlon Group Q1 FY21 at a glance (consolidated):

Revenue

- Q1 FY21 Rs. 513 crores

Operating Performance

- EBITDA: Rs. 91 crores in Q1 FY21; EBITDA margin at 17.7%
- EBIT: Rs. 20 crores in Q1 FY21

- Reported Net Loss of Rs. 399 crores in Q1 FY21

Key highlights:

Industry update

- The Andhra Pradesh Renewable Energy Export Policy, 2020, has been announced to attract private investments for establishing solar/wind/wind-solar hybrid projects on a massive scale

- Power ministry to extend waiver of Inter-State Transmission System (ISTS) charges and losses on supply of power generated from wind and solar sources until 30th June 2023. No ISTS charges would be levied for 25 years from the date of commissioning of the power plants and will include Captive, Open Access and Hybrid projects.

Shares of SUZLON ENERGY LTD. was last trading in BSE at Rs.3.84 as compared to the previous close of Rs. 3.89. The total number of shares traded during the day was 6072353 in over 2768 trades.

The stock hit an intraday high of Rs. 3.94 and intraday low of 3.8. The net turnover during the day was Rs. 23339485.

Source : Equity Bulls

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