Suzlon Posts Financial Results for Q2 FY21, PAT at Rs 670 Crore

The Suzlon Group has announced its second-quarter results for FY21 (Q2 FY21), with the performance considered encouraging in the current scenario.

The Suzlon Group, one of India’s largest wind energy developers and renewable energy solutions provider, has announced its second-quarter results for the financial year 2020-21 (Q2 FY21). The firm claims its performance has been encouraging in the current scenario.

Ashwani Kumar, CEO, Suzlon Group said, “Q2 of FY 21 was the first quarter post-closure of our debt restructuring process. This quarter marked the restart of our operations and entry back into the market amidst the constraints of COVID- 19. I am encouraged by the financial performance of our operations and service business in these challenging times. Overall despite the ongoing challenges, I remain confident of growing momentum in the coming months.

“The Government’s focus on ‘Aatmanirbhar Bharat’ and the overall encouraging environment will pave the way for boosting the sector and attracting diverse investors. We are particularly enthusiastic about forthcoming bids being conducted by SECI for RTC (round the clock) renewable energy power and wind-solar-storage hybrid power procurement. We see this as the next phase of growth in the Renewable Energy market in India.”

Financial Performance (Consolidated)

• Revenue

Q2 FY21 Rs 725 crores

• Operating Performance

EBITDA: Rs 112 crores in Q2 FY21; EBITDA margin at 15.4 percent

EBIT: Rs 43 crores in Q2 FY21

PAT: Rs 670 crores in Q2 FY21

The firm had shown a consolidated loss of Rs 777 crore in the same quarter, last year.

Swapnil Jain, CFO, Suzlon Group said, “In the Q2 results we again see a clear improvement in EBIDTA over last year. Our focus on controlling operating and fixed cost as well as reduction in finance costs is reflected in our P&L performance. Pursuant to our debt restructuring which was implemented in June 2020, part of our debt was converted to Optionally Convertible Debenture (OCD) and Compulsorily Convertible Preference Shares (CCPS) which are recorded at fair valuation in liabilities of the company and the balance has been credited to other equity.

Our manufacturing operations have resumed with six facilities starting production in line with all precautions of the COVID 19 protocol and the pace is picking up. This quarter we also restarted supply of our turbines. Our service business continues to do well and all our wind farms have been functioning without interruption. SE Forge, our forging and foundry business is also securing good orders. The impact of our operational progress will be felt in the coming quarters.