Suzlon Takes Net Profit Up by 82% YoY in Q3, Reports Debt-Free Balance Sheet
The company's net revenue for the quarter was ₹14.17 billion
Wind turbine manufacturer Suzlon Energy posted a net profit of ₹1.02 billion (~$12.2 million) during the second quarter (Q2) of the financial year (FY) 2024, an increase of 82% year-on-year (YoY).
The increase in net profit can be attributed to the reduction in operating and other expenses during the quarter. The company reported a substantial reduction in quarterly finance costs by ~55% on a YoY basis, to ₹437 million (~$5.2 million).
The company’s net revenue for the quarter was ₹14.17 billion (~$170.2 million), a decrease of 1% YoY.
Suzlon’s earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled ₹2.24 billion (~$26.9 million), up 8% YoY.
The company recorded an exceptional loss of ₹349.9 million (~$4.2 million), which was balanced out with the reduced expenses during the quarter.
The company’s net cash position stood at ₹5.99 billion (~$71.9 million) as of September 2023 vis-à-vis net debt of ₹11.8 billion (~$141.7 million) as of March 2023. The net debt-free balance sheet was achieved after the successful completion of Qualified Institutional Placement (QIP).
Himanshu Mody, Chief Financial Officer, Suzlon Group, said, “On the back of a successful QIP conclusion in August 2023, the journey of making our company debt-free has been completed, thereby leading to a further reduction in quarterly net finance cost by ~61% YoY. While proportional benefit from our debt reduction initiatives can be seen in these results, the full impact of debt reduction will be felt from the next quarter onwards.”
Suzlon recorded a net profit of ₹2.03 billion (~$24.4 million) during the first half (1H) of FY24, a decrease of 92% YoY.
The decrease in net profit for the April-September period is primarily due to an exceptional loss stemming from the difference in de-recognition resulting from the full conversion of Optionally Convertible Debentures and Cumulative Convertible Preference Shares after accounting for transaction costs.
The company’s net revenue for 1H FY24 was ₹27.65 billion (~$332 million), a marginal decrease of 1.5% YoY.
Suzlon’s EBITDA for the January to September period totaled ₹4.31 billion (~$51.7 million), up 10% YoY.
As of September 31, 2023, the company’s orderbook stood at 1,613 MW, with a fair split between the S120 and S144 turbine orders. According to Chalasani, Suzlon’s focus for the rest of the financial year remains to execute its order book and commercialize the S144 – 3.0 MW to 3.15 MW series.
“We have closed another satisfying quarter in line with our business plan for FY24. Our performance during the quarter has been consistent and heartening. As the market picks up momentum, we have continued to show solid improvement across our value chain. The highlight for us in the last few months has been the installation of the first prototype of our S144 – 3 MW turbine at 160-meter hub height in Gujarat. This development is aligned to our plans for commercialization of this product series,” said JP Chalasani, Chief Executive Officer of Suzlon Group.
Last October, Suzlon announced raising ₹12 billion (~$146.4 million) through a rights issue of 2.4 billion partly paid-up equity shares. The issue was oversubscribed 1.8 times.
In December 2022, the company also approved the sale of its remaining stake of 51.05% in the subsidiary Vayudoot Solarfarms to Ahmedabad-based Aries Renewables for a consideration of ₹142.3 million (~$1.7 million).