October 22, 2011
Suzlon Group H1 FY12: Revenues Rs. 9,397 cr, up 52%; EBIT Rs. 588 cr vs Rs. (662 cr) y-o-y
Revenues of Rs. 9,397 cr / US$ 1,877 mn, against Rs. 6,170 cr / US$ 1,232 mn for H1 FY11
Gross profit margins improved to ~35%
PAT at Rs. 108 cr / US$ 22 mn, against a loss of Rs. 1,281 cr / US$ 256 mn for H1 FY11
FY12 full year guidance maintained
Strong Rs. 32,330 cr / ~US$ 6.5 bn orderbook; six-month order intake of Rs. 8,937 cr / US$ 1.78 bn
Pune: Suzlon Energy Limited, the worlds fifth largest* wind turbine supplier,
reported its earnings today for the quarter ended September 30th, 2011.
Mr. Tulsi R. Tanti, founder, Chairman and Managing Director Suzlon Group,
said: We are pleased to report consistently improving performance. We have made
significant progress on key strategic initiatives, including the completion of the
Hansen sale, realizing about US$ 187 mn, and the continuation of the squeeze-out
process with REpower.
Looking at our markets, we continue to see strong growth in India, Germany,
France, UK, Canada and the offshore segment, reflected in our extremely strong
US$ 6.5 bn orderbook which saw US$ 1.78 bn of new orders over the past six
months. As a Group, we see sustained momentum with our diversified geographic
footprint, and a customer base primarily comprised of large utilities and IPPs.
Mr. Robin Banerjee, Chief Financial Officer Suzlon Energy Limited, said:
We are pleased to report the third consecutive profitable quarter, and a strong
performance for the first half of the fiscal. Our gross profit margins improved to
approximately 35 per cent, despite a very competitive market environment.
Looking ahead, our focus continues to be on improving operational efficiency,
managing our debt profile, and securing orders.
Key Updates
Orders: The Suzlon Group orderbook stood at 4,734 MW, ~Rs. 32,300 cr /
~US$ 6.5 bn in value as on 21st October, 2011. The Group secured
1,355 MW in new orders over the past six months, with India alone
contributing 637 MW. Suzlon-subsidiary SE FORGE recently announced Rs.
200 cr / US$ 40 mn of major third-party orders from the wind sector.
Machine availability: Global Group fleet of over 18,000 MW consistently
delivering availability (uptime) levels meeting the industry average. Suzlon's
flagship S88 turbine with an installed base of over 2,200 units worldwide
ended the most recent quarter with an availability of ~98 per cent. In
addition, six prototypes of the new S9X suite installed globally are already
delivering an average availability of over 97 per cent.
REpower squeeze-out: REpower shareholders approved the squeeze-out
motion at its AGM held on 21st September, 2011, and due legal process
continues under German corporate law.
Hansen stake sale: Suzlon acquired gearbox-manufacturer Hansen in 2006
and successfully tripled its capacity, expanding into low cost countries India
and China, making it a global and more cost-effective player catering to the
worlds leading wind power companies. Suzlons remaining 26.06 per cent
stake was acquired by ZF, at a 95 per cent premium to the then prevailing
market price, for US$ 187 mn on 12th October, 2011. Suzlon and Hansen
continue to have a long-term buyer-supplier partnership for the years ahead.
Market outlook: The industry continues to grow with strong momentum in
emerging markets, the offshore segment and key developed markets. The
Indian market shows strong growth, with the market size expected to reach 5
GW annually by 2015. The World Institute for Sustainable Energy, India
(WISE) considers that with larger turbines, greater land availability and
expanded resource exploration, the wind potential in India could be as high as
100 GW. The offshore markets global share in total installations will increase
from ~3.5 per cent in CY10 to ~8-9 per cent in CY15, with UK, Germany,
France and Belgium leading the way.
