Suzlon Group, the world’s fifth largest* wind turbine maker, on Thursday 30th May 2013, announced its results for financial year 2012-13 (FY13).
Mr Tulsi Tanti, Chairman – Suzlon Group, said: “This has been an extremely difficult year for the Suzlon Group. We faced both significant internal challenges on the liability management front, and externally with a highly competitive global wind sector, and turbulent India market which shrank by almost 50 per cent.
“Breaking out of this cycle required a strategic shift on our part in order to preserve value and ensure the sustainability of our business in the long-term. This meant that, over the fiscal, the business was under-resourced which contributed to what is a very poor result.
However, we consider this to have been a necessary sacrifice and have made substantial and real progress in addressing our liabilities, as well as in improving our business efficiency. Despite these challenges, we secured new orders of nearly US$ 4.3 bn over the year, REpower continued to outperform the sector, and we enter the new fiscal focusing 100 per cent on execution.”
Mr Kirti Vagadia, Group Head of Finance, said: “As we have stated in the past, FY13 presented us with a textbook conflict in allocation of resources, between our business needs and those of our liabilities. While we made significant progress, under Project Transformation, in streamlining the organization over the year – reducing headcount at Suzlon Wind by nearly 2,000 positions, improving business efficiency, and in liability management – the impact of this has been a very low volume of execution, along with the resultant non-routine costs. Delays in execution have also led to the cancellation of a small number of orders, totaling 195 MW; however with a steady intake of new orders, our order book position remains net positive, giving us solid order coverage over the mid-term. “While our FY13 numbers are extremely disappointing, the business is starting to stabilize. We embark into FY14 with additional working capital support, a leaner workforce, lower fixed costs, and a more efficient cash cycle. While the market environment continues to remain extremely challenging, we are positioning the business to take advantage of the market recovery, which is independently projected for CY2014.”
Wind Power |
News published on 03 / 06 / 2013 by Bharat Vasandani