July 30, 2011
Significant operating turnaround in Q1 FY12
EBIT up YoY to Rs. 349 cr / USD 79 mn
from Rs. (672) cr / USD (152) mn
- 80% YoY growth in revenues to Rs. 4,326 crore / US$ 980 million
- FY12 guidance maintained
- PAT Rs. 60 crore / US$ 14 million, against loss of Rs. 912 crore / US$ 206 million of Q1 FY11
- EBITDA Rs. 490 crore / US$ 111 million, against negative EBITDA of Rs. 546 crore / US$ 124 million of Q1 FY11
- Gross profit margins improved to 35%; from 30% in FY11
- Strong order book of ~Rs. 29,291 crore / ~US$ 6.63 billion
- Order intake of 580 MW
Pune: Suzlon Energy Limited, the worlds fifth largest* wind turbine supplier,
reported its earnings today for the quarter ended June 30, 2011.
Mr. Tulsi R. Tanti, founder, Chairman and Managing Director Suzlon Group,
said: We are pleased to report a strong first quarter on all operational parameters
with an EBIT margin of 8.1 per cent. Our performance is in line with our full year
guidance, and we have maintained a very strong order book at US$ 6.63 billion.
In addition, we have taken important steps regarding our long-term strategy we
have entered into an irrevocable agreement with ZF Friedrichshafen AG to sell our 26
per cent stake in Hansen for approximately US$ 187 million, and the REpower
squeeze-out process continues as planned.
Mr. Robin Banerjee, Chief Financial Officer Suzlon Energy Limited, said:
We have reported a profitable first quarter, with a major turnaround from a loss of
Rs. 912 crore in Q1 FY11 to a profit of Rs. 60 crore in Q1 FY12. We have improved
our gross profit levels to 35 per cent despite a very competitive market environment
and rising commodity prices. We have maintained our focus on consistently
improving operational efficiency, managing our debt profile, and securing orders.
Key Updates
Market Outlook: Despite the challenges in developed markets, the wind
industry continues to grow with strong momentum in emerging markets and
the offshore segment. Recent policy developments on energy security and
safety concerns, such as the planned phase out of nuclear in Germany and
carbon pricing being introduced in Australia, have placed an increased
emphasis on renewables, particularly wind, translating to a positive outlook
even in developed markets over the mid-to long-term.
Offshore: REpower has established a current installed offshore base of over
171 MW, with over 91 MW added in the first quarter of the fiscal. Worldwide
offshore installations grew by 96 per cent in 2010 and, as per MAKE
consulting, the market is projected to grow by over 37 per cent annually and
to reach eight per cent of all new global wind power installations by 2015.
Orders: The Suzlon Group order book stood at 4,739 MW (~Rs. 29,291 crore
/ ~US$ 6.63 billion) in value as on 29th July, 2011; with an order intake of
580 MW since the last announcement.
New products: There has been strong interest in the new Suzlon S9X-2.1
MW suite, specially designed for medium-to-low wind regimes, with over 450
MW in new orders for projects in Australia, Europe, India, and North and
South America. Prototypes of the S9X class turbines are now running in
Australia and India, with more due to be commissioned later this fiscal.
REpowers new 3XM turbine designed for low wind speed sites has also
seen a strong market response, with over 300 MW in new orders already
booked.
Availability: Suzlon Groups global fleet of over 17,000 MW is consistently
delivering availability (uptime) levels of over 97 per cent.
REpower: Under the squeeze-out proceedings, with reference to REpowers
minority shareholders, the compensation value was set at EUR 142.77 per nopar
value share, putting the total value at approximately EUR 63 million /
~Rs. 398 crore / US$ 90 million. A resolution on the squeeze-out is to be
tabled at REpowers annual general meeting, scheduled for 21st September
2011.
Hansen stake sale: An irrevocable undertaking was signed to accept the
offer from ZF Friedrichshafen AG for Suzlons current holding of 26.06 per
cent equity interest in Hansen Transmissions, for a value of approximately
GBP 115 million / ~Rs. 828 crore / US$ 187 million. The Offer represents a
premium of approximately 95 per cent, over the closing price of (GBP) 33.75
pence per Hansen share on 22 July 2011. This is in line with Companys
strategy to de-leverage and strengthen the balance sheet.
