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RM Updates

Suzlon Energy maintains lead with a strong order backlog

Suzlon Energy LOGO
  • 126 MW sales volume in Q2 FY19
  • EBITDA of Rs. ­­­115 crores (Pre-forex); EBITDA Margin 9.6% in Q2 FY19
  • Net loss (Pre-Forex) at Rs. 280 crores in Q2 FY19
  • Strong order backlog of 1,057 MW as on date

 Suzlon Group, India’s largest renewable energy solutions provider, announced its Q2 FY19 results.

JP Chalasani, Group CEO, said, “We successfully completed India’s first SECI 1 wind power project of 250 MW for Sembcorp Energy India Limited (SEIL) at Chandragiri in Tamil Nadu. We are the only EPC player to have completed the entire project as per the original timelines and 6 months ahead of SECI’s revised timelines. We also crossed a milestone, with an installed capacity of over 12 GW in India and over 18 GW globally. On the technology front, we installed and commissioned the first prototype of S120 – 140m – India’s tallest Wind Turbine Generator (WTG) with a Hybrid Concrete Tubular (HCT) Tower. Indian wind industry is on a growth trajectory with ~10 GW of capacity already auctioned and another 10 GW expected to be auctioned in FY19. The industry is set to grow from FY20 onwards as projects won earlier, will be executed and new bids are in the pipeline. Suzlon is well positioned in the auction regime with orders of 1,413 MW from the already concluded auctions and is in discussion with customers for incremental orders for the untied capacity of ~3 GW in the recently concluded auctions. Owing to the project execution timeline of 18 months, these orders will be executed over FY19 and FY20. Our vertically integrated manufacturing capabilities, strong pan-India presence, technologically advanced products and superior O&M capabilities give us a competitive edge in the current high volume environment. On the solar front, we sold 49% stake in our Maharashtra solar project to CLP India. With this, we have sold a minority stake in all our solar projects and shall sell the balance 51% by March 2019. We continue to maintain our debt reduction target of 30-40% by the end of FY19.”

Kirti Vagadia, Group CFO, said, “Our Q2 FY19 performance is impacted due to elongated transition phase as our volumes continue to remain subdued. We remain focused on cost optimization across the board including COGS and fixed costs, in order to remain more competitive in this changed market scenario. There has been a reduction in the net working capital of Rs.402 crores during Q2 FY19. Results of Q2 was also affected by forex fluctuation which is non-cash and translational in nature.”

Suzlon Group Q2 FY19 financial performance at a glance (consolidated):

  • Revenue of Rs. 1,195 crores
  • EBITDA (pre-forex) of Rs. 115 crores, EBITDA margin of 9.6%

Debt (excluding FCCB)

  • Net term debt at Rs 6,803 crores
  • Working capital debt at Rs 3,395 crores
  • Minor increase in debt due to foreign exchange fluctuation

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