Suzlon Sizzles with turnaround Q2 numbers and 670 Crores profit
Backed by a robust cost restructuring and lower break-even levels Suzlon Group, India’s largest renewable energy solutions provider, has announced stellar second-quarter results for the financial year 2020–21 (Q2 FY21). The company under the new leadership of CEO Ashwini Kumar has posted a consolidated net profit of around Rs 670 crore in the September quarter mainly due to lower expenses. The company had recorded a consolidated net loss of over Rs 777 crore in the quarter ended on September 30, 2019, as per the statements to the stock exchanges.
The profit is predominantly driven by OMS business and kickstarting of the Wind turbine generation business.
The EBIDTA stood at Rs 112 crores in Q2 FY21 with EBITDA margin at 15.4% , the PAT 670 crores in Q2 FY21.
This is the first time in 3 years the company has reported a profit and demonstrating that the debt restructuring and the cost reductions have cleaned up the balance sheet.
In his first quarterly earnings report as CEO Mr. Ashwani Kumar, CEO, Suzlon Group said, “Q2 of FY 21 was the first quarter post-closure of our debt restructuring process. This quarter marked the restart of our operations and entry back into the market amidst the constraints of COVID 19. I am encouraged by the financial performance of our operations and service business in these challenging times. Overall despite the ongoing challenges, I remain confident of growing momentum in the coming months. The Government’s focus on ‘Aatmanirbhar Bharat’ and the overall encouraging environment will pave the way for boosting the sector and attracting diverse investors. We are particularly enthusiastic about forthcoming bids being conducted by SECI for RTC (round the clock) renewable energy power and wind-solar-storage hybrid power procurement. We see this as the next phase of growth in the Renewable Energy market in India.”
Analysts are pleasantly surprised by these robust numbers and see Suzlon staking claim to its position as the poster boy of wind energy.
The stock was locked in a 5% upper circuit with no sellers.