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Suzlon ends difficult year on Rs 983-cr loss

This article was posted on May 31, 2010 and is filed under Stock News

Wind turbine maker Suzlon Energy posted a net loss of Rs 188 crore for the fourth quarter ended March 31, as against a net profit of Rs 314.9 crore in the year-ago period, hurt by continued turbulent times for the wind energy industry.

In the fourth quarter of 2009-10, the group clocked a total income of Rs 6,164 crore, 33 per cent less as against Rs 9,207.9 crore in the year-ago period. Sales volume for the fourth quarter fell to 650 Mw from 1,046 Mw.Suzlon clocked a loss of Rs 982.6 crore in 2009-10, as against a net profit of Rs 236.5 crore in 2008-09. The group’s income from operations stood at Rs 20,620 crore for the year, 21 per cent less as against 26,081 crore in the year-ago period, said a press release. For the financial year, Suzlon’s sales volume fell to 1,460 Mw from 2,790 Mw a year ago, lower than the earlier forecasted sales of 1,900-2,100 Mw for the year.

“This has been a difficult year for the wind industry. While market conditions continue to be challenging, we have made encouraging progress and are working on improving order pipelines the world over,” said Chairman and Managing Director Tulsi Tanti.

The Suzlon group orderbook was Rs 18,400 crore and the Suzlon Wind (excluding German subsidiary REpower) orderbook stood at 1,126 Mw (Rs. 6,174 crore) as on May 26.

During the year, the company reduced its net debt by Rs 2,036 crore to Rs 9,765 crore from Rs 11,800 crore a year ago. Suzlon also refinanced its existing rupee-denominated term loans and working capital loans, through new facilities from a syndicate of 22 banks, for a total of Rs. 10,624 crore, said the release.

“We have maintained a strong focus on improving the operating efficiencies and optimising our capital structure in the face of a challenging external environment. Over the year, we have made progress on many fronts including reduction of net debt and net operating working capital, as well as bringing down cost at various levels,” said Robin Banerjee, chief financial officer.

Personnel changes
Meanwhile, Sumant Sinha, chief operating officer (COO) of Suzlon,would leave the company with effect from June 1, to set up his own financial advisory consultancy. “I have wanted to pursue my own entrepreneurial path for some time now and a financial advisory firm allows me to launch off on my own and deeper dive into many interesting areas. I look forward to my continued association with Suzlon and I am delighted that it will be my first client,” he said.

Suzlon’s German subsidiary, REpower, also effected some major management changes and brought in Andreas Nauen as new chief executive officer. Nauen was previously CEO of Siemens Wind Power and is scheduled to join by October. REpower also appointed Derrick Noe as CFO.

Suzlon also brought in Ashok Dizusa as president, Southeast Asia and Middle East. He was earlier heading the global business of Siemens Building Technology. The compny also brought in Stephan Mey as chief executive of Suzlon Europe. Mey was previously senior vice president in charge of the global power plants business of Man Diesel.

source: Business-Standard

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