Suzlon Group, India’s largest renewable energy solutions provider, announced its half yearly (H1 FY18) results.
J P Chalasani, Group CEO, said, “Indian wind industry is in transition from FiT to competitive bidding mechanism. Indian government’s commitment to Renewable Energy remains intact and we strongly believe that the long term fundamentals of the wind industry are sound. This transition has a temporary impact on installations in FY18, due slow beginning of bidding and delay in regulatory approvals. However, we are confident that the industry is likely to regain its momentum with 6 GW+ volume expected in FY19. It will soon migrate towards a 10 GW market size. With the newly discovered tariff, Wind is competitive with respect to other sources of energy and has emerged as a mainstream energy source.
Going forward, we are well positioned to capitalize on the market opportunities with our superior technology, project execution experience spanning over two decades, new generation turbines offering higher energy yield, presence across the entire value chain, vertically integrated operations and bestin-class service capabilities.”
Kirti Vagadia, Group CFO, said, “The advent of bidding has led to a temporary uncertainty due to the transition from the FiT regime. We have focused on cost optimization across the board including COGS, fixed costs and interest, in order to become more competitive in this changed market scenario. With strong project pipeline and customer tie ups, we are confident of quickly ramping up volumes and execution to meet the expanded market requirements. Our priorities are to continue to ramp up volumes, build strong order backlog, optimize costs across the board, and maintain disciplined working capital level.”
Suzlon Group H1 FY18 financial performance at a glance (consolidated):
– Revenue of Rs. 3,852 crores
– EBITDA (pre-forex) of Rs.582 crores, EBITDA margin of 15.1%
Debt (excluding FCCB)
– Net term debt at Rs 6,747 crores
– Working capital debt at Rs 3,244 crores
– Minor increase in Working capital debt due to higher utilization of Working capital limits
Shares of SUZLON ENERGY LTD. was last trading in BSE at Rs.15.55 as compared to the previous close of Rs. 15.5. The total number of shares traded during the day was 7325242 in over 3171 trades.