Suzlon Energy’s net loss shrinks in Q3FY16: order book is shining

Suzlon Energy declared its quarterly results on January 29. The company’s revenue declined by 62 per cent to Rs 1891 crore in Q3FY16 as compared to same period in previous fiscal year. Its total expenditure decreased by 64.75 per cent to Rs 1651 crore in Q3FY16 on a yearly basis.

Suzlon Energy’s EBITDA decreased by 18.4 per cent to Rs 241 crore in Q3FY16 as compared to same period in previous financial year. However, the company’s EBITDA margin expanded by 680 basis points to 12.73 per cent in Q3FY16 on a yearly basis. Its interest expense reduced by 40.73 per cent to Rs 266 crore in Q3FY16 from Rs 449 crore in Q3FY16.Suzlon Energy witnessed exceptional loss of Rs 5990 crore as disposal of subsidiary during Q3FY15 as against zero in Q3FY16. The company’s net loss narrowed down to Rs 113 crore in Q3FY16 as against Rs 6539 crore in Q3FY15.

On segmental revenue front, Suzlon Energy earned 94.79 per cent from Wind Turbine Generator segment; 5.11 per cent from Foundry & Forging segment; and remaining from others during December 2015 quarter.

Considering nine month financials, Suzlon Energy’s revenue rose by 28.5 per cent from 5083 crore in 9MFY16 as compared to same period in previous fiscal year. The company reported EBITDA of Rs 846 crore with margin of 16.6 per cent in 9MFY16. Its net interest reduced by 34.5 per cent to Rs 737 crore in 9MFY16 on a yearly basis. Suzlon Energy successfully decreased net debt burden by Rs 6469 crore during 9MFY16. As of Q3FY16, the company’s total debt stands at Rs 9837 crore.

Suzlon Energy’s order book stands at 897MW, amounting to Rs 5527 crore as on Q3FY16. The company’s Year to Date (YTD) net order intake is over 760MW as compared to 375MW in entire fiscal of FY15. Post Q3FY16, it has already announced orders of 298MW and now current backlog is of 1195MW.

The share price of Suzlon Energy declined by 5.91 per cent on bourses in early trades; and is trading at Rs 19.35 on an intraday basis.

Suzlon Energy manufactures and sells wind turbine generators (WTGs) and related components of various capacities. The company operates through three segments viz. sale of WTG, Foundry & Forging and others. It has approximately 10 manufacturing facilities in India, China and America. Suzlon Energy has operations in Asia, Australia, Europe, Africa, and North and South America. Its technology products include Blade Technology, Nacelle, Tower and Foundation, Park Control and System Integration.