Suzlon Net Loss Trims Down to Rs 337 Crore in Last Quarter

Suzlon Energy has revealed that its consolidated net loss narrowed to Rs 337 crore in the quarter, on account of lower expenses.

Debt-laden Suzlon Energy has revealed in its latest financial results for the quarter ending June 30, 2019, that its consolidated net loss narrowed to Rs 336.88 crore in the quarter, on account of lower expenses. The company had reported a loss of Rs 575.10 crore in the corresponding period of the previous financial year. 

Its total expenses in the April-June 2019 quarter declined to Rs 1,178.39 crore as compared with Rs 1,866.04 crore in the year-ago period, according to a BSE filing. 

The firm’s total income dropped to Rs 851.09 crore, compared with Rs 1,289.94 crore a year ago. In the January-March quarter this year, it had reported a loss of Rs 294.64 crore. The company had reported a net loss of Rs 1,537.19 crore in 2018-19.

Suzlon Energy Group Chief Executive Officer J P Chalasani said in a statement, “We continue to witness a sectoral slowdown, owing to the prolonged industry transition to the bidding regime and policy uncertainty in few states. On the positive side, tariffs are stabilising and the volume growth in the long-term augur well for sustainable growth of the sector.”

He said the company’s operation and maintenance services (OMS) division continues to deliver high machine performance for the customers, surpassing industry benchmarks. 

Suzlon Energy Group Chief Financial Officer Kirti Vagadia said, “Post default scenario, the company operations are at a sub-optimal level. However, we have continued to focus on cost optimisation across the board including the cost of goods sold (COGS), fixed costs, working capital and thereby curtailed losses in this lean period.”

The company’s consolidated net term debt is Rs 7,751 crores, while its working capital debt is Rs 4,000 crore, it added.

In April, it was reported that among the wind equipment manufacturers in India, Suzlon installed the most in FY 2018-19 with 581 MW, followed by Denmark based wind energy company Vestas with 492 MW, while Siemens Gamesa installed about 261 MW, according to multiple sources close to the development.