Suzlon maintains strong market position despite sector transition.

Suzlon Group, India’s largest renewable energy solutions provider, today announced its unaudited quarterly (Q1 FY19) results.
 
J P Chalasani, Group CEO, said, “Indian wind market is on a growth trajectory with 7.5 GW of capacity already auctioned, from this we have the highest order share. However, FY19 may not see huge commissioning volumes as the transition period is prolonging and as a result of the new bidding regime, project execution time has increased from 9 to 18 months. This has caused temporary delay in realizations. Nevertheless, Industry is set to grow from FY20 onwards as projects won earlier, will be executed and new bids are in the pipeline. We have an order book of 1,134 MW. Suzlon is well positioned to cater to the growing market, with its slew of newly launched technologically advanced products offering higher Plant Load Factor (PLF) and reduced Levelized Cost of Energy (LCoE). We are also focussing on select profitable international market.”
 
Kirti Vagadia, Group CFO, said, “We have delivered 155 MW in Q1 FY19, which is seasonally a low volume quarter. To ensure competitiveness under the new bidding regime; we remain focused on optimizing costs across the board, and further reducing our working capital levels. While we have withdrawn our FY19 operational guidance in light of the prolonged transition, we continue to maintain our debt reduction target of 30-40% by the end of FY19.”
 
Suzlon Group Q1 FY19 financial performance at a glance (consolidated):
 
Revenue : Rs 1,272 crore
EBITDA (Pre Forex) of Rs. 77 crore, margin of 6.1%
Net loss (Pre fx) of Rs. 321 crore in Q1 FY19
Debt (excluding FCCB)
*Gross term debt at Rs 7,136 crore
Working capital debt at Rs 3,471 crore
 
 Order book
Order book as on 30th June 2018 stands at 1,134 MW
Consolidated customer advance stands at Rs. 935 crore
 
Key highlights:
 MNRE sets target of 5 GW by 2022 and 30 GW by 2030 for Offshore Wind Energy

 

Business | News published on 06/08/2018 by Rashmi Nargundkar

 
 
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