Q4 net rises to Rs 579 cr – Suzlon posts profit as renewable energy sector turns around
Wind turbine supplier Suzlon Energy swung to a fourth quarter net profit helped by record installations of wind energy stations in the country, cost cutting by the company and growing orders for products, including solar installations.
In the three month period ended March 31, 2017, the Pune-based company turned in a net profit of Rs 579 crore. It had recorded a net loss of Rs 324 crore, a year ago in the same period.
Total income for the company increased 54% to Rs 4,999.33 crore.
Revenue from the wind energy generator segment jumped 44% and profit from the segment increased 3.59 times during the quarter compared to the previous year’s same quarter.
The company said it will commission 1,562MW of renewable energy in FY18 – much of it in wind. This is expected to bring in over Rs 9,000 crore of revenue for the company in the current financial year.
“Wind energy in India delivered its highest installation of 5,502 MW in FY17, registering 61% growth over 3,415 MW in FY16,” the company said in a statement. In the same period, the company added 879MW in FY17 out of the total countrywide addition of 2,087MW.As a result of increased inflows and higher order potential, the company pared down its debt by Rs 341 crore in FY17. In the last two fiscals, the company has brought down its peak debt levels by about 37%.
Nonetheless, the company still had Rs 11,114 crore gross debt as on March 2017. In the next three years, however, only Rs 1,092 crore of debt will mature for the company .
The company is looking to exit the corporate debt restructuring it entered with the lenders in FY13. Kirti Vagadia, group CFO, said they expect the exit process to be completed by the first half of FY18.
“We are consciously mindful of reducing debt. To this end, we will use part of our profit and also other strategic initiatives to bring it down,” he said.