Suzlon Energy Losses Grow to Rs 40 Cr in 3rd Quarter

The company’s total income in the quarter came down to Rs 1,112.34 crore from Rs 2,220.25 crore a year ago. 

Suzlon Energy, a premier wind energy solutions provider, has reported that its consolidated net loss has widened to Rs 40.07 crore in the December 2018 quarter year-on-year, mainly due to lower revenues, higher forex loss, and finance costs. Its consolidated net loss was Rs 32.68 crore in the quarter ended December 2017, the company said in a statement. 

The company’s total income in the quarter came down to Rs 1,112.34 crore from Rs 2,220.25 crore a year ago. 

During the April-December 2018 period, the loss was Rs 1,242.55 crore, while the company earned a consolidated net profit of Rs 85.84 crore in the year-ago period. 

It reported a consolidated net loss of Rs 384.01 crore in 2017-18. 

JP Chalasani, CEO, said in the statement, “We continue to strengthen our position in the Indian wind industry with 2 orders totalling 328 MW won from Adani Green Energy under auctions. We are on track with the execution of our order book including the SECI projects. We will begin FY20 with strong order book since 10.7 GW of auctions has already taken place.”

The company said it incurred losses during the period, due to lower volumes, foreign exchange losses, and finance costs which resulted in negative net worth. 

It said the net current liabilities (including foreign currency convertible bond) were Rs 4,570.21 crores in the standalone financial results and Rs 4,192.11 crore in the consolidated financial results as at December 31, 2018. 

Suzlon further said these conditions indicate the existence of a material uncertainty that may cast significant doubt over the company’s ability to continue as a going concern.  

Kirti Vagadia, CFO, said, “The prolonged transition phase continues to impact the industry at large and also our Q3 FY19 performance. We are regularly servicing our debt obligations towards banks and others including for the month of January 2019. Our focus on working capital, debt reduction, cost optimisation across the board including COGS and fixed costs is unwavering.”

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