Suzlon's service revenues up by 11% YoY

Suzlon Group announced its results for the Q2 FY15. Suzlon posted its 3rd consecutive quarter of positive EBIDTA at consolidated level reaffirming its improved performance.

Mr. Tulsi Tanti, Chairman – Suzlon Group, said:  “I take pride to share that we achieved a significant milestone of 25,000 MW installations globally. The group remains focused on high growth and profitable markets and is well positioned to gain in its core markets. Globally, we will leverage Senvion’s leadership in off-shore technology to capitalize on the growing demand in the offshore segment. The Indian market has witnessed a positive impact of the government’s thrust on clean energy and policy reforms. We have launched new products and will continue to invest in technology to provide clean and affordable energy for all.”

Mr. Kirti Vagadia, Group Head of Finance, said: “We achieved a positive EBITDA in first half which is historically lower than the second half. We have improved our gross margin by 500 basis points in H1 FY15, primarily due to better product and market mix. We continue to optimize our working capital to improve our operational performance.“

Key Highlights:

1. Suzlon Group :Performance Update:

Third consecutive quarter of positive EBITDA -

• Q2 FY 15 EBITDA Rs. 114 crs  v/s  Q2 FY 14 of Rs. - 31 crs
• H1 FY 15 revenue of Rs. 9,974 crs ( 16% YoY growth)
• H1 FY 15 gross margin improved to 32.5 % from 27.3 %
• Increased service revenues; up 11% YoY

2. Senvion: Increased revenues  by 25 % YoY 

3. Order Book: Continues to be robust at 4.6 GW valued at US$6.3 bn

Orders received post 30th Sep’14 not included. Incremental order inflow for 67 days only (since 25th Jul’14)

4. Business Impact of Policy Reforms:

• Reinstatement of Accelerated Depreciation (AD)
• Generation Based Incentives
• Access to low cost funding
• Renewable Energy spends qualify for mandatory CSR

5. Key Developments:

• Suzlon won orders from existing and new customers in India with a combined capacity of 150 MW
• Suzlon manufactured the first prototype of S111 2.1 MW turbine, engineered to deliver  20% higher energy production
• Senvion expanded its  portfolio of the 3 megawatt series with the introduction of 3.4M114 suited for wind regimes across Europe and Australia