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Suzlon turns around; achieves consolidated net profit of Rs. 483 Crores in FY16

Suzlon turns around; achieves consolidated net profit of Rs. 483 Crores in FY16


Suzlon Group, one of the leading global renewable energy solutions providers, recently announced its audited quarterly (Q4) and annual (FY16) results.Mr Tulsi R Tanti, Chairman and Managing Director, Suzlon, said, “We are back to profit, our commissioning MW increased by more than 100% and we are confident of maintaining the growth with strong focus on execution. The Indian market is expected to increase by 30% in FY17, and Suzlon will continue to outpace the industry.

Globally, the demand for renewables is growing with a record 64 GW installation and an investment of US$ 329 billion during calendar year 2015. The demand for clean, sustainable and affordable power will continue especially in emerging markets.”Mr. J P Chalasani, Group CEO, Suzlon, said, “FY16 performance demonstrates our resurgence with a strong and sustainable turnaround. Suzlon is best equipped to cater to the domestic demand and deliver on the government target of 60 GW wind by 2022. We continue to drive technology innovation in wind and introduce next generation turbines which brings down the Levelised Cost of Energy (LCOE). Our S111 120 meter hybrid tower WTG prototype installed in Gujarat, India is delivering superior results leading to a commercial launch in this fiscal year.”

Mr. Kirti Vagadia, Group Chief Financial Officer (CFO), Suzlon, said, “We started FY16 with a clear focus on profitability which we delivered by ramping up volumes and exercising better control over fixed cost. We have significantly reduced our net working capital, optimized the debt maturity profile and maintained strong liquidity position throughout the year. We continue to demonstrate strong operational performance on every front including volume growth, commissioning and order intake.”

Suzlon Group Q4 FY16 / Annual financial performance at a glance:
 Revenue
 FY16 Rs. 8,259 Crores against Rs 4,883 Crores in FY15; 69% growth Y-o-Y (*)
 Q4 FY16 Rs. 3,244 Crores against Rs 1,889 Crores in Q3 FY16

 Operating Performance (normalised EBITDA)
 FY16 EBITDA of Rs 1,295 Crores, EBITDA margin of 15.7% (*)
 Q4 FY16 at Rs 487 Crores, EBITDA margin at 15%
 Consolidated Net Debt (excluding FCCB)
 FY16 at Rs. 8,452 Crores down from Rs. 14,570 Crores in FY15
 Order Book and Order Intake
 FY16 order book stands at 1,243 MW valued at Rs. 7,989 Crores
 Consolidated customer advance stands at Rs. 1,182 Crores which reflects the good quality of order backlog.
 FY16 net order intake of 1,251 MW as compared to 375 MW in FY15; 69% of the order intake resulting from new products (S97-120m and S111-90m).
 Q4 FY16 order intake at 790 MW
Key highlights:
1. Technology and New product
o Opened a new research center in Vejle, Denmark to develop rotor blades and smart control systems
o The S111-90 turbine received Type Certification for both 50 Hz and 60 Hz variants and delivered 102% of its designed power curve
o The S111-120 meter hybrid tower prototype turbine was commissioned in Gujarat, India
2. Key order wins in [Q4 FY16]
o 197.40 MW from a leading power utility
o 105 MW maiden order from Greenko
o 71.40 MW from Gujarat Industries Power Company Ltd
o 81.90 MW turnkey orders from new and existing customers
o 48.30 MW from Indian Oil Corporation Limited
3. Debt optimisation
o In April 2016, Suzlon subsidiary AE-Rotor Holding B.V announced the redemption of SBLC backed Bonds of US$ 590.4 million (carrying a coupon of 4.97%) and availed a credit facility of an equivalent amount at a competitive coupon of 3.30% backed by the SBLC
o Foreign Currency Convertible Bonds (FCCBs) worth US$ 28.8 million were repaid along with the applicable redemption premium
4. Net Working Capital
o Reduced overall net working capital to ~14% of revenues from ~23% in Q3 despite 73% higher volumes
o Increase in debtors due to high volumes in end of Q4, part of which already realised in April 2016

5. SE Forge (a 100% subsidiary of Suzlon) exited CDR and received Investment Grade rating from CARE
6. Management team was strengthened with the appointment of Mr. J. P. Chalasani, Group CEO and Mr. Rakesh Sarin, CEO, International business and Global Services
7. Market Outlook
o Wind Energy in India delivered its highest installation of over 3,400 MW in FY16 and is expected to grow by more than 30% in FY17
o India’s commitment at COP21 to achieve 40% renewables by 2030 will continue to fuel demand for clean energy
o Strong intent of the Government and supportive policy actions to enhance the role of renewables in India’s energy security
o Policy stability in USA with 5 year Production Tax Credit (PTC) extension will result in immense growth for wind energy in USA
o Global Wind Energy Council forecasts global wind energy capacity to double over the next five years, representing growing demand

Anand Gupta Editor - EQ Int'l Media Network


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