Suzlon Group has announced its results for the first quarter (Q1) of financial year 2013-14.
Mr Tulsi Tanti, Chairman – Suzlon Group, said: “This has been a progressive quarter for the Suzlon Group. We regained some of our lost momentum and began to see results from the Group’s ongoing focus on key priorities. This is reflected in the uptick in performance at the Suzlon Wind level, and REpower continuing to deliver a respectable performance despite a very challenging marketplace. “Looking at the markets, India continues to regain momentum, returning from a 50
per cent drop in the last fiscal. In other key emerging as well as developed markets, for example Australia, Canada, Europe, South Africa, we continue to see positive movement.. “While we expect this year to continue to be challenging, we are confident that our mid-to-long-term outlook remains strong.”
Mr Kirti Vagadia, Group Head of Finance, said: “On the operational front I am pleased to note that real progress has been achieved. While our financial performance was impacted by the exceptional depreciation of the Rupee, and we incurred one-time costs related to restructuring at REpower, we achieved steady progress on key operating indicators.
“With a total focus on execution we delivered near-normal volumes, compared to historic performance, at the Suzlon Wind-level. However, as Q1 is also the lowest volume quarter in a fiscal for our business, resulting in an under-absorption of fixed costs having a negative impact on the bottom-line.
“It is important to note that we continue to bring down fixed costs, and therefore our break-even point. We have achieved a 31 per cent reduction in our operating
expenses as compared to the last quarter, we continue to bring down the working capital-to-sales ratio to 11.4 per cent at the end of Q1, from 13.6 per cent in the last quarter. Our non-critical asset divestment program continues to be on track.
“There remains a lot of work to be done but this performance gives us the confidence that, with the continuing support of our lenders, customers, suppliers and key stakeholders, we are on the right road to business normalization.”
Wind Power |
News published on 06 / 08 / 2013 by Bharat Vasandani