Suzlon Reports net Loss of Rs 399 Crore, Firm Still Positive

Suzlon has reported that its net loss has widened to Rs 399 crore, but the Group and its key executives are positive the firm will bounce book soon.

Suzlon Group, one of India’s largest renewable energy solutions providers has announced its first-quarter results for the financial year 2020-21 (Q1 FY21). The firm has reported that its net loss during the quarter has widened to Rs 399 crore from Rs 326 crore in the same period of the previous fiscal. But despite the widening of its losses, the Group and its key executives are positive the firm will bounce book soon.

VR Tanti, COO said that the COVID-19 pandemic and the implementation of the Debt Restructuring which was completed on June 30, 2020, impacted the firms’ WTG business in Q1. The quarter in which the firm posted a revenue of Rs 513 crore and an EBITDA of Rs 91 crore, and a margin of 17.7 percent.

“We have started securing new orders in Q1 and have a healthy order book of 867 MW. Despite the challenges of the lockdown, our Operations and Maintenance Service (OMS) business continues to deliver good performance and ‘SEForge’ our forging and foundry business has also performed well,” said Tanti. “We have geared up our manufacturing plants and project sites as per the new social distancing and safety guidelines of the Government and are all set to begin full-fledged operations.”

The firm’s COO then went on to say that the Government’s focus on ‘Aatmanirbhar Bharat’ will boost domestic manufacturing in the wind sector and definitely benefit Indian wind turbine manufacturers like us.

The group also pointed out that at an industry level there have been several positive developments with a slew of policy announcements. The Power Ministry had announced the extension of waiver of Inter-State Transmission System (ISTS) charges and losses on the supply of power generated from wind and solar sources until June 30, 2023. Under which, no ISTS charges would be levied for 25 years and the same is also applicable to Captive power projects, which will open up a new market segment.

Swapnil Jain, CFO said that the Q1 results we see a clear improvement in EBITDA over last year, which is a testimony of the success achieved in controlling our fixed costs.

“As the Debt Resolution Plan was implemented at the end of Q1 FY21, the impact of the reduction in interest cost will be seen in the coming quarters. However, part of interest cost on securities issued to the Lenders would keep getting charged to the statement of profit and loss in future years which is notional. The company is now strongly positioned to resume the WTG business and execute our order book. We have also reorganised the business to suit the new market paradigm, which has helped in a significant reduction of our break-even levels making us even more competitive.”