February 4, 2011
Suzlon Group Q3: Record US$ 7.3 bn orderbook; steadily improving performance
- Group orderbook rises to record US$ 7.3 bn; increase of 35 per cent*
- Group revenues of Rs. 4,433 cr. (US$ 968 mn)
- EBITDA of Rs. 182 cr. (US$ 40 mn); Normalized EBITDA of Rs. 354 cr. (US$ 77 mn.)#
- EBIT of Rs. 40 cr. (US$ 9 mn); Normalized EBIT of Rs. 212 cr. (US$ 46 mn)#
- Gross margins maintained at 32 per cent
- Net debt-to-equity ratio of 1.5x
Mumbai: Suzlon Group, the worlds third largest** wind turbine supplier, reported
its earnings today for the quarter ended December 31, 2010.
Mr. Tulsi R. Tanti, Chairman and Managing Director Suzlon Group, said: I
am pleased to report that our Group performance is steadily improving. Emerging,
offshore and key matured markets are showing sustained momentum. Our strategy
to focus on these markets is delivering for us, as evidenced by our steady inflow of
major orders over the past few months in India, Brazil, Canada and Belgium. Our
US$ 7.3 billion orderbook (~5,000 MW) is one of the best in the industry, and gives
us strong visibility for future growth.
While the business environment remains challenging, particularly in the US and
parts of Europe, our competitive position remains strong with a global sales and
service organization spanning 32 countries and 15 GW operating wind capacity
worldwide which is delivering in excess of 97 per cent availability. Our customer
focus, comprehensive product portfolio and low cost supply chain has allowed us, in
just 15 years, to build a base of over 1,800 customers, including 11 out of 15 of the
largest wind customers worldwide.
Mr. Robin Banerjee, Chief Financial Officer Suzlon Energy Limited, said:
We have achieved a marked improvement in business performance over the past
three quarters. There has been progress on all financial parameters and we have
delivered steady gross profit margins. Our debt-to-equity ratio has been maintained
and our focus on bringing down fixed costs is delivering results; we are working hard
to reduce these further.
However, notional forex losses have impacted our reported bottom line due to the
significant volatility in the Euro-Rupee exchange rates. We are very clearly headed in
the right direction, substantially improving our quarterly normalized EBIT
performance year on year.#
Key Updates
Market outlook: The global market for wind energy is improving. There has
been a steady increase in financing for new build wind projects, quarter on
quarter, going from US$ 18 billion in Q1 CY10 to US$ 26 billion in Q3 CY10.
Additionally, there is significantly higher visibility of volumes emerging, with a
global pipeline of 140 GW to 150 GW of wind installations over the next three
years.^
Orderbook: The Suzlon Group has reported its largest ever orderbook,
valued at approximately US$ 7.3 bn.
o The Suzlon Wind orderbook stood at 2,578 MW (Rs. 14,600 cr.), with 1,624
MW (Rs. 9,300 cr.) in domestic orders and 954 MW (Rs. 5,300 cr.) in
international orders as on February 4, 2011.
o The REpower orderbook stood at EUR 2.9 billion (2,458 MW), compared to
EUR 2.6 billion (2,254 MW) at the previous years record date, marking an
increase of 11 per cent.
India: Suzlon entered into an agreement for 1,000 MW with Caparo Energy
India Limited, valued at approximately US$ 1.28 billion the largest in
India to-date. The Company has also signed an order for 150 MW with
Hindustan Zinc, a Vedanta Group company.
Brazil: Secured 218 MW order in Brazil from the Martifer Group, reinforcing
Suzlons presence in this growth market.
Canada: REpower and Saint-Laurent Énergies Inc. concluded a contract for
the delivery of 300 MW of capacity for the Lac Alfred wind farm project,
making it the largest onshore project to date for the Company.
Belgium: REpower also signed 295 MW contract with C-Power for Thornton
Bank offshore wind farm in Belgium. This contract as measured by
investment volume represents the biggest ever project financing in the
offshore wind industry.
New offices: Suzlon Energy announced the opening of a sales office in South
Korea, a wind market with an estimated potential of 27 GW; and appointed a
sales head for Sweden, which has set targets for half of the nations energy
coming from renewables by 2020.
New appointment: Suzlon Energy appointed He Yaozu as CEO and Country
Manager of its China operations, Suzlon Energy Tianjin Limited. Yaozu has
been a senior adviser to China Machinery New Energy Co, and serves as a
non-executive director of China Green Power Limited.
Suzlon is giving a strong push to expand its China operations through
initiatives including establishing an R&D centre in Tianjin, co-investing in wind
farm projects, and increasing its manufacturing investment. Suzlon is the first
major international wind turbine manufacturer in China with a Chinese CEO.
MoU with Gujarat Government: Suzlon signed a MoU with Gujarat
Government, under the auspices of Vibrant Gujarat, to develop 1,000 MW of
wind power projects.
15 GW installations: This quarter Suzlon Group marked a significant
achievement and crossed the 15 GW milestone in worldwide installations.
These include 10 GW by Suzlon Energy Limited and 5 GW by REpower
Systems AG, amounting to nine per cent of the worlds total wind power
installations. It covers Group onshore and offshore installations in 25
countries. The cumulative power generation from this 15 GW capacity has the
potential to light up more than 13 million## households every year.
