Suzlon takes path of profitability post restructuring: EBIDTA margin rise 261%, EBIDTA rise 124%
It’s a path to profitability at Suzlon, it has choosen profitability and cost optimisation over scale which it has pursued and paid dearly.
Suzlon has released its first Q1 FY 21 results post the debt restructuring and the path of profitability is showing green shoots.
The company sales has declined 38.47% to Rs 512.67 crores predominantly due to the wind turbine generator business not commencing manufacturing partly due to covid-19 and the debt restructuring and working capital challenges which the company has completely resolved.
Net Loss of Suzlon Energy reported to Rs 397.87 crore in the quarter ended June 2020 as against net loss of Rs 335.11 crore during the previous quarter ended June 2019.
It has shown a very lean cost structure and a EBIDTA of 91 crores, the finance cost has largely stayed the same but the CFO Swapnil Jain reiterated that is non cash based and is settled by issuance of CCPS as the debt restructuring was completed by June 30th 2020.
Sales declined 38.47% to Rs 512.67 crore in the quarter ended June 2020 as against Rs 833.15 crore during the previous quarter ended June 2019.
The company is well poised to resume the WTG unit to execute the order book and show increased revenues and possibly aim for profit in the coming quarter, said Swapnil Jain CFO, Suzlon Energy.
The consolidation and cost optimisation is completed and it matter of time the company starts scaling the operations to its previous scale.
*Inputs from Ram Shivsagar Pune