Suzlon demonstrates sustainable turnaround; posts net profit of Rs.839 crores in FY17

Suzlon Group, India’s largest renewable energy solutions provider, announced its audited quarterly (Q4 FY17) and annual (FY17) results. Suzlon recorded an all-time high commissioning, by installing 1,779 MW in FY17 taking its cumulative installations to over 11 GW in India and over 17 GW globally.

Tulsi Tanti, Chairman and Managing Director, said, “It gives me immense pleasure to announce that Suzlon delivered yet another profitable year. Our focus has been on restoring the confidence of every stakeholder and today, the performance speaksfor itself. We continue to work towards scaling greater heights.

I congratulate and thank our management team, employees, customers, bankers, vendors, suppliers and shareholders who continued to support us throughout our journey.”

J P Chalasani, Group CEO, said, “We continue to demonstrate strong operational performance on every front including volume growth, commissioning and order intake. The performance in Q4 FY17 displayed the never-say-die spirit of Suzlon in achieving such record numbers for the first time in its illustrious history. Furthermore, we created ~1,800 MW of blade manufacturing capacity in one single year. All that we committed at the beginning of the year has been delivered and we look forward to capitalize on the potential in the industry.”

Kirti Vagadia, Group CFO, said, “We started FY17 with a clear focus on profitability which we delivered by ramping up volumes and exercising better control over fixed costs. Despite achieving phenomenal growth in volumes and profitability, we have managed to reduce our net working capital, optimized the debt profile and continue to maintain strong liquidity position for future ramp up. ”

Our order book as on 31st March, 2017 stood at 670 MW. The order intake during Q1 FY 18 so far is 411 MW and an additional order of 250 MW from our customer in the SECI bidding. These orders have been received from IPP customers and retail for S111 90m and S111 120m. Further we are carrying an order book of 231 MW in solar, taking our total order book to 1562 MW. These orders will be commissioned in FY18.

Suzlon Group Q4 FY17 / Annual financial performance at a glance:

Revenue

 FY17 Rs. 12,693 crores against Rs. 9,430 crores in FY16; 35% growth Y-o-Y

 Q4 FY17 Rs. 4,993 crores against Rs. 3,219 crores in Q4 FY16

Operating Performance (EBITDA*)

 FY17 EBITDA of Rs. 2,203 crores, EBITDA margin of 17%

 Q4 FY17 EBITDA at Rs. 722 crores, EBITDA margin at 15%

Consolidated Net Term Debt (excluding FCCB)

 FY17 at Rs. 6,198 crores down from Rs. 6,528 crores in FY16

Order Book and Order Intake

 Order book as on date stands at 1,562 MW including 231 MW from Solar

 Consolidated customer advance stands at Rs. 793 crores which reflects the good quality of

order backlog.

Key highlights:

1. New product

 The S111-120m wind turbine generator achieved ~42% Plant Load Factor (PLF) in its first 12

months of operation, reflecting a 20% higher energy yield compared to S97-120m

2. Debt optimisation

 Foreign Currency Convertible Bonds (FCCBs) worth US$ 30 million were repaid along with

the applicable redemption premium

 SBLC backed debt repaid US$ 21 million

 FCCBs worth US$ 326 million have been converted till date, since the date of issuance.

3. Net Working Capital

 Reduced overall net working capital to 14% of revenues from 23% in Q3 despite 20% higher

volumes

4. Manufacturing

 Three new blade factories commenced operations in Badnawar (MP), Jaisalmer (Raj) and

Anantpur (AP) in FY17

5. Milestone

 Suzlon achieved over 11,000 Megawatt (MW) cumulative wind energy installations in India

6. Credit Rating

 Rating agency CARE has upgraded Suzlon’s investment grade credit rating to BBB from BBB-

 Rating agency CARE has upgraded SE Forge’s investment grade credit rating to BBB from

BBB-

 Suzlon Global Services Limited (formerly known as Suzlon Structures Limited) (“SGSL”) has

received A- (Provisional) credit rating with stable outlook from CARE

Market Outlook

 Wind Energy in India delivered its highest installation of 5,502 MW in FY17 registering 61%

growth over 3,415 MW in FY16

 INR 40,000 crores (USD 6.2 billion) of total investment made in wind manufacturing in India

 In FY17, India added 15.3 GW in the renewable energy while conventional power rose just

7.6 GW

 India’s commitment at COP21 to achieve 40% energy through non-fossil sources by 2030 will

continue to fuel demand for clean energy

 Strong intent of the Government and supportive policy actions to enhance the role of

renewables in India’s energy security

 In the next six years, wind energy is expected to grow at 6 GW per annum to achieve the

targets