According to reports, Suzlon Energy Ltd. (SUEL), this year’s worst-performing stock in the NEX index of clean-energy shares, reported a wider quarterly loss after incurring costs from scaling back wind-turbine manufacturing in Germany.
The net loss expanded to 10.6 billion rupees ($173.5 million) in the quarter through June from 8.48 billion rupees a year earlier, the Pune, India-based company said today in an e-mailed statement. Sales fell 18 percent to 38.9 billion rupees.
Suzlon is struggling to pay down debt accumulated through overseas acquisitions, which included Hamburg-based unit REpower Systems SE. A global supply glut reduced turbine prices by 25 percent from their peak in 2009, prompting Suzlon to close some facilities in Germany and cut staff. Those one-time costs, combined with a depreciating rupee, weighed on earnings.
“While we expect the year to continue to be challenging, we are confident that our mid-to-long-term outlook remains strong,” Chairman Tulsi Tanti said in the statement. “Looking at the markets, India continues to regain momentum.”
Suzlon ceded its position as the top wind-turbine supplier in India for the first time in at least a decade last year as it sought to contain its liabilities. The company reduced staff by more than 1,000 people in the quarter, having cut more than 1,500 jobs the previous financial year, the statement shows.
The shares dropped 4.3 percent to 6.7 rupees today in Mumbai, extending their decline this year to 64 percent.
Suzlon is on schedule to divest about $400 million in assets, according to the statement. The company’s order book totaled 5.36 gigawatts at the end of the quarter, having added 356 megawatts in the period.