Suzlon continues to deliver profitable growth: Q1 FY18 results

Suzlon Group, India’s largest renewable energy solutions provider, announced its audited quarterly (Q1FY18) results.

J P Chalasani, Group CEO, said, “We continue to achieve profitable growth as evidenced by the 4th consecutive quarter of delivering net profit. We are confident this momentum will continue. Thetransition from FiT to competitive bidding has createdtemporary volatility in terms of volume and margins.  In the long-term, all stakeholders will benefit from higher volumes. We have commissioned our next generation turbine, the S111-140 meters which will establish new performance benchmarks. Our presence across the value chain, end-to-end solutions and best-in-class services gives us a competitive edge. The future of wind energy is brighter than yesterday. Wind as a source of energy will remain cost competitive, affordable and reliable.”

Kirti Vagadia, GroupCFO, said, “We remain focused on a profitability and sustainable volume growth. Delivering 412 MW in Q1, which is seasonally a low volume quarter, is a testament of the same. Our continued focus on cost optimization hashelped us to secure a healthy bottom lineand gives us operatingleverage. We continue to maintain disciplined working capital level. In order to cope with the temporary uncertainties in the domestic market we have further strengthened our risk management in order to maintain our margins.”

Suzlon Group Q1 FY18 financial performance at a glance (consolidated):


·         Q1 FY18Rs2,665crores against Rs 1,648 crores in Q1 FY17; 62% growth Y-o-Y

·         New products constitute 76% of volume (S111-120m and S111-90m) 

Operating Performance (EBITDA*)

·         EBITDA of Rs.475 crores, EBITDA margin of 18%

Debt (excluding FCCB)

·         Gross term debt at Rs 7,345 crores

·         Working capitaldebt at Rs 2,545 crores 

·         Minor increase in net debt levels due to higher utilization of Working Capital limits

Order Book and Order Intake

·         Order book as on 30th June 2017stands at 1,169MW

·         Consolidated customer advance stands at Rs.945crores which reflects the good quality of order backlog

Key highlights:


1. New product

·         The S111-140mwind turbine generator was commissioned at Jamanwada, in Kutch, Gujarat. It is the tallest wind turbine generator (WTG) in India with a tubular-lattice combination structure, which will further reduce the Levelised Cost of Energy (LCOE)

·         This product is expected to deliver better performance than the previous variant S111-120 meters which delivered 42% PLF at the same site

2. Debt optimisation

·         FCCBs worth US$ 68 million have been converted till date in FY18

·         Obtained approvals for replacing high cost debt with low cost Non-convertible Debentures (NCD) option

3. Milestone& Awards

·         Top 50 Indian Innovator award by Clarivate Analytics India Innovation Award 2016. Clarivate Analytics, formerly IP & Science division of Thomson Reuters, recognizes the most innovative companies of India according to patent-related metrics.

Business | News published on 11/08/2017 by Rashmi Nargundkar

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