October 31, 2008
Suzlon Announces Q2 2008-09 Results
Achieves PAT INR 123 cr., excluding exchange loss on FCCB
New capacity build up on-track
SE Forge commences commercial production
Mumbai: Suzlon Energy Limited (SEL), the worlds fifth leading and Indias largest
wind turbine manufacturer, reported sales growth of 35% for the quarter ended
September 30, 2008.
The company reported consolidated revenues excluding Hansen and REpower Group of INR
6,268 crore in H1 FY09, a 35.12% growth over corresponding period of the previous year. Profit
after tax stood at INR 123 crore excluding accounting for exchange loss on FCCB of 343
crore, and SEL's consolidated order book stood at INR 15,131 crore (USD 3,034 ml), combined
for the wind and component businesses as on October 29, 2008.
Speaking on the companys performance, Mr.Toine van Megen, CEO of Suzlons wind
energy business, stated: We have registered a steady growth in our top line growth, with
sales increasing over 35% over the first half of the previous year and 7% increase in
EBIDTA. Our profitability however has been affected by a number of exceptional items,
as compared to the previous period. Mark-to-market losses along with notional losses
on account of our USD 500 million FCCB, coupled with business factors like increased
logistics costs has resulted in lowered profit.
Suzlon reported a consolidated order book position of INR 14,052 crores (2,505 MW) in
wind; with INR 1,261 crore (236 MW) in domestic orders, and INR 12,791 crore
(2,269MW) in international orders; with additional orders of INR 1,080 crore in the componentbusiness
leading to total orderbook position of INR 15,131 crores as on October 29, 2008.
The companys capex plans are on schedule to expand wind turbine manufacturing
capacity by 3,000 MW, leading to a total manufacturing capacity of 5,700 MW
worldwide. The company has also cancelled further planned capex for a tower
manufacturing facility in India reducing capex by INR 669 crores, due to changing
business dynamics making it more economical to outsource tower production to local
markets.
Speaking on the plans, Mr. Sumant Sinha, COO of Suzlons wind energy
business, stated: We are responding dynamically to a rapidly changing environment.
Suzlons growth to become a world leader has been led by far-seeing vision, and our
ability to change to suit new business realities will be key to our future growth.
Speaking on the outlook for the wind industry, Mr. Tulsi R. Tanti, Chairman and
Managing Director of Suzlon Energy Ltd., stated: We are today in the midst of
navigating through a challenging economic landscape. The crisis in credit and capital
markets had affected the economy at large. The wind industry has also seen the
impact of these changing economic conditions.
However, the future for our business is robust. A majority of customers are large
utilities with strong balance sheets. We believe that the overall imperative for
sustainable development and wind energy remain strong with the worlds limited
supply of fossil fuels and a looming climate crisis. Enabling factors like the Renewable
Portfolio Standards and Production Tax Credits in key markets will continue to be
strong growth drivers.
