Suzlon Group issued results for the second quarter (Q2) FY13-14.

Suzlon Group, the world’s fifth largest* wind turbine maker, on Wednesday, October 30th 2013, announced its results for the second quarter (Q2) of financial year 2013-14.

 

Mr Tulsi Tanti, Chairman – Suzlon Group, said: “Despite significant challenges our business is improving steadily. “As part of our strategic initiatives, we have strengthened our product portfolio, adding a new turbine variant designed specifically for low wind sites in developed economies; we secured entry into Uruguay, one of the most promising Latin American markets; and, divested 75 per cent of our China subsidiary, converting it into a joint venture which helps us maintain a foothold in the world’s largest market. “Looking ahead, we see an evolving – but promising – market for wind energy worldwide; and with the actions we are taking, we see a sustainable outlook for Group in the long term.”

 

Mr Kirti Vagadia, Group Head of Finance, said: “While we continue to progress on the operational front, we reported a significant net loss primarily driven by lower volumes, the impact of the depreciating Rupee, and restructuring costs. We are, however, pleased to report a positive EBITDA (net of forex) in Q2 after five quarters. “We continue our focus on increasing volumes while optimizing fixed costs, opex and working capital, which will enable us to improve our financial performance. “We believe we are on the way to recovery, and while this has taken longer than envisaged, with the support of our key stakeholders we are on our way to achieve this.”

 - Q on Q improvement:

1) Revenues at Rs 4,769 cr/~US$ 777.3 mn for Q2 FY14 vs. Rs 3,851 cr / ~US$ 627.7 mn for Q1 FY14

2) EBITDA at Rs (31) cr/~US$ (5) mn in Q2 FY14 vs. Rs (302) cr/~US$ (49.2) mn for Q1 FY14

3) Q2 FY14 EBITDA (excluding forex loss) at Rs 39 cr/~US$ 6.3 mn

- Project Transformation delivering: Opex reduced by 38% YoY; Networking capital down to 9.9% of sales

- China-subsidiary 75% divestment completed

- New market entry: Maiden order of 65 MW in Uruguay