Suzlon retains market leadership; geared to capitalize on strong industry volumes.

Suzlon Group, India’s largest renewable energy solutions provider, today announced its fourth quarter (Q4 FY18) and annual results of financial year 2017-18 (FY18).

Tulsi Tanti, Founder & CMD, Suzlon, said, “With over 34 GW installations, the Indian wind sector is highly mature and is geared to unlock the 300 GW potential. With 7.5 GW already auctioned, 9.5 GW auctions announced and another 6 GW to be auctioned in H2, over 23 GW of volumes will potentially be executed between FY19-FY21. Further, wind tariffs seem to be bottoming out, which is also a positive sign for the sector.

There is traction across all new and emerging segments in the sector as evidenced in several positive policy actions for offshore, wind-solar hybrid, repowering, captive, and feed-in-tariff for small projects upto 25 MW. We clearly see India as a 10-12 GW per annum market. At Suzlon, our R&D efforts will continue to focus on leveraging technology for developing products with higher energy yield, reducing Levelized Cost of Energy (LCoE) and maintaining our cost competitiveness.”

J.P. Chalasani, Group CEO, Suzlon, said, “FY18 performance is a testament of our resilience, competitive-edge and agility to adapt to the changing market dynamics. We delivered the highest wind installations in India and continue to remain the market leader, amidst industry’s transition to the bidding regime. We also successfully commissioned our entire 340 MW solar projects. Our vertically integrated manufacturing capabilities, strong presence pan-India and across all customer segments, superior O&M capabilities and world-class technology gives us a competitive edge in the current high volume environment. This is also evidenced in the fact that we have the largest share of order win from capacities auctioned till date. In FY18, we launched three new turbines viz. S111-140, S120 and S128. This will strongly boost our product competitiveness in the current bidding regime We will remain cost competitive by leveraging India as the manufacturing hub and focusing on cost-optimisation, operational excellence, rapid execution and new product development.”

Kirti Vagadia, Group Chief Financial Officer (GCFO), Suzlon, said, “We have successfully navigated the volatile external environment in FY18, with our clear focus on project execution and cost-optimization across the board. During FY19, we will continue to extensively focus on cost optimization and improving the net working capital efficiency. We also remain committed to reduce our debt by 30-40% through combination of asset monetization and operational cash flows.”

Suzlon Group Q4 FY18 and Annual financial performance (FY18) at a glance (consolidated):

 Revenue

 FY18 at Rs 8,292 crore

 Q4 FY18 Rs.2,236 crore

 Operating Performance

 

EBIDTA (Pre forex)

 Rs. 1,149 crore in FY18; EBITDA margin at 13.9%

 Rs. 319 crore in Q4 FY18; EBITDA margin at 14.3%

 

EBIT (Pre forex)

 Rs. 807 crore in FY18; EBIT margin at 9.7%

 Rs. 218 crore in Q4 FY18; EBIT margin at 9.7%

 Net Loss of Rs 384 crore in FY18; Net loss of Rs 470 crore in Q4 FY18

 Debt

 Consolidated net term debt (excluding FCCB) at Rs.6,037 crore

 Working capital debt at Rs. 3,889 crore

 Order book and Order intake:

 Firm Order book stands at 1,203 MW backed by PPAs valued at Rs 7,135 core

 Framework agreement / PPAs in hand over 700 MW. PPAs on these are already signed, only ratification is pending

 During the year we added ~1,956 MW to our opening order book of 901 MW.

We delivered 1,173 MW. During the year, Mytrah’s long term order of 436.8 MW included in our opening order book was cancelled due to change in regime from FiT to auction, 218.4 MW orders from Renew, Greenko, other IPPs and retail customers were cancelled due to non-availability of PPAs outside auctions and 77.7 MW orders of Renew, other IPP and retail customers were short closed due to change in tariff post 31st March 2018.

Today’s firm order book is at 1,203 MW plus framework agreement/ PPA’s in hand of over 700 MW.

Business | News published on 01/06/2018 by Rashmi Nargundkar

 
 
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