Suzlon Energy - Robust Order Book Growth - Motilal Oswal

SUZLON 3QFY11: Order book grows ~2x in 9MFY11; Order intake triples in 9MFY11; WTG EBITDA positive

During 3QFY11, Suzlon WTG business reported revenues of Rs25b (up 2.4% YoY, up 14% QoQ).

EBITDA turned positive at Rs1.8b against a loss of Rs740m YoY. Adj PAT was a loss of Rs880m, substantially lower than loss of Rs3.5b YoY.

Order Book at 2578MW was up 743% YoY while 3Q revenues at 461MW were up 14% YoY and 27% QoQ. Order Backlog in value has doubled in nine months.

Order intake stood at 1489MW which nearly tripled YoY. The order backlog consists of 1624MW (63%) in India while Exports constitute 954MW (33%).

On a consolidated basis for 3QFY11, Suzlon reported revenues of Rs45b down 20% YoY. EBITDA margins of 5.4% (up 40bp YoY) while Adj PAT was a loss of Rs1.9b vs a loss of Rs2.3b YoY. Gross Debt for WTG business stood at Rs111b vs Rs117b in March 10, and is largely stable over the past 4-5 quarters. Suzlon during FY10 had refinanced acquisition loan of USD780m and INR loans of Rs106b. Under Review.

Source : Equity Bulls

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