Suzlon Q4 FY23: Positive Net Worth After a Decade at INR 1,099 cr, 80% YoY Slide in Current Net Debt

Suzlon Q4 FY23: Positive Net Worth After a Decade at INR 1,099 cr, 80% YoY Slide in Current Net Debt

Renewable energy solutions provider Suzlon has released its fourth quarter (Q4 FY23) and annual audited results for financial year 2022‐23 (FY23).

The firm has reported its revenue at INR 5,947 crores for FY23. For Q4 FY23, the number has been pegged at INR 1,690 crores. As for its EBITDA margins, it stands at 14% with profit at INR 832 crores in FY23.

Suzlon Turns Into Success Story

In FY23, PAT before exceptional items was INR 167 crores and in Q4 FY23, it is INR 68 crores. The firm has reported an 80% YoY reduction in current net debt at INR 1,180 crores. In a noteworthy revelation, the firm’s net worth has turned positive after a decade at INR 1,099 crores. The firm has seen successful rights issue of INR 1,200 crores. It has been 1.8 times over subscribed. There has been a signifcant reduction of debt attributable to this reason. Net profit after tax is a solid INR 320 cr.

Installed Capacities, Market Share

Suzlon’s cumulative market share in India is at an impressive 33%, with an installed wind capacity of 19.8 GW globally. Suzlon has certainly managed to establish a global presence, claiming 14.84 GW in Asia, 2.78 GW in North America, 0.81 GW in South America, 0.51 GW in Europe, 0.14 GW in South Africa.

The firm has a solid set of clients in kitty, including leaders in RE space such as Renew, Sembcrop, Vedanta, Backrock, Adani Renewables.

As fas as its Indian presence is concerned, Suzlon has made its presence felt in Gujarat with 3.4 GW, followed by Tamil Nadu, Rajasthan, Maharashtra at 2.6 GW, 2.3 GW and 2.1 GW respectively.

Order Book 

Suzlon’s order book appears radiant with a cumultaive order book at 1542 MW. Notably, Suzlon has won orders worth 322 MW in central auctions. Of this, 51% of orders are for its 3 MW (S144) Series that has struck a chord with buyers.

The firm has reported an uptick in order book with rolling out what its says is the highly competitive 3 MW WTG series. The sales from the series has contibuted majorly to the revenue share of Suzlon. This year, the new series introduced from Suzlon has invited orders from Torrent Power, Serentica, Vibrant Energy, Juniper, Sembcorp.

Growth Story: FY22 vs FY23

In terms of volumes, Suzlon’s volumes stood at 808 MW in FY 22, while in FY23, it is 664 MW. The revenue share, in a contrast to INR 6520 Cr in FY22 is INR 5947 Cr in FY23. The EBITDA margins have improved as has the net finance cost which slided from INR 712 cr in FY22 to INR 401 cr in FY23. The net worth, which had been consistently negative in previous years has upturned to become positive and net worth ratio is at 1.1x.