Suzlon Reduces its Net Loss by ₹1.75 Billion in Q4 of FY 2019
The company also announced that it has been able to scale its market share for the fourth consecutive year and commission 582 MW capacity of wind projects
Wind turbine supplier and renewable energy developer Suzlon Energy Limited has announced its quarterly and annual results for the financial year (FY) 2019. The company reported that its consolidated net loss for the last quarter (Q4) of the year (ending March 31, 2019) had reduced to ₹2.94 billion ($35.6 million), a decrease of more than ₹1.75 billion ($25 million) compared to the same period last year.
The company’s revenue from operations for Q4 FY19 stood at ₹14.21 billion ($203 million), a decline of over 34% from the revenue of Q4 FY18.
On an annual basis, the company reported revenue of ₹49.78 billion ($710 million) and a net loss of ₹15.37 billion ($220 million) for FY 19. Suzlon’s revenue for FY 2018 stood at ₹82.92 billion (~$1.23 billion) while it registered a net loss of ₹3.84 billion (~$0.057 billion) for FY 2018.
The company stated that it has been able to achieve a market share of 39% and scale its market share for the fourth consecutive year. Suzlon’s order book stood at over 1,320 MW, which, according to the company, is one of the largest in the Indian wind industry. Suzlon also announced that it had commissioned 582 MW capacity of wind power projects during FY2019 period.
J P Chalasani, Group CEO of Suzlon, said, “We continued to maintain market leadership and deliver highest installations amidst a prolonged and challenging industry transition to the bidding regime. The achievement demonstrates our strong technical and project execution capabilities and over two decades of experience in the Indian market. We continued our excellent track record in operation and maintenance service by achieving 97.48% machine availability, highest to date. FY20 is expected to be a relatively high volumes market with central and state-level auctions in India. We are geared to capitalize on growth with our superior technology, vertically integrated operations, and best-in-class services. We will continue our R&D efforts and remain at the forefront of developing technologically advanced and innovative wind turbines. We are committed to reducing our debt and are progressing well on strategic initiatives undertaken by the team.”
According to Suzlon, with increased electricity generation from renewable sources, grid integration requires more importance. It mentioned that various government agencies, turbine manufacturers, power producer, as well as utilities, are currently focussed on steps to be taken in this regard.
In April 2019, Suzlon announced that it would sell two of its solar subsidiaries which operate solar projects of 30 MW capacity to Ostro Energy, a wholly owned subsidiary of independent power producer, ReNew Power.
Before that, the company announced that it had completed the sale two of its subsidiaries to CLP Wind Farms (India) Ltd (CLP). Suzlon stated that it had sold the remaining stake in its subsidiaries S.E Solar Limited and Gale Solar Farms Limited for a consideration of ₹765.5 million ($11.1 million) and ₹225.4 million ($3.3 million) respectively. CLP had acquired 49 percent stake in Gale from Suzlon in September 2018. Gale operates a 50 MW solar power project in Dhule district of Maharashtra. The project is contracted under a 25-year power purchase agreement with Solar Energy Corporation of India Limited.
Mercom had reported last year when Suzlon announced a net loss of ₹2.8 billion (~$38.86 million) in the second quarter of FY19.
Image credit: Suzlon
Shaurya is a staff reporter at MercomIndia.com with experience working in the Indian solar energy industry for the past four years in various roles. Prior to joining Mercom, Shaurya worked with a renewable energy developer and a consulting company. Shaurya holds a Bachelors Degree in Business Management from Lancaster University in the United Kingdom.