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Suzlon Energy swings back to profit; Posts Rs 543 crore PAT

According to reports, wind turbine manufacturer and solar developer Suzlon Energy Ltd consolidated the turnaround it had shown in its December quarter by posting a profit after tax (PAT) of Rs 543 crore in 2016-17 against a loss of Rs 268 crore in 2015-16. In the March quarter, it had a profit of Rs 268 crore against a mere Rs 15 crore in the corresponding quarter a year ago.

In the December 2016 quarter too, it had achieved a PAT of Rs 274.34 crore against a loss of Rs 121.84 crore in the same quarter the previous year.

“We started 2016/17 with a clear focus on profitability which we have delivered by ramping up volumes and exercising better control over fixed costs,” said Kirti Vagadia, Group CFO, Suzlon.

Suzlon’s gross revenue in 2016-17 was Rs 12,693 crore against Rs 9,430 crore a year ago. Its revenue for the March quarter stood at Rs 4,993 crore compared to Rs 3,219 crore in the same quarter last year.

Taking wind and solar together, the company recorded a volume growth of 49%, rising from 1,131 MW in 2015/16 to 1,682 MW in 2016/17 of which wind comprised 1,573 MW and solar 109 MW.
It showed an EBITDA growth of 64% from Rs 1,343 crore last year to Rs 2,203 crore, the EBITDA margin rising from 14.2% to 17.4%. It has reduced its debt by Rs 341 crore (debt stands at Rs 9,920 crore) and net working capital by 8%. “Despite achieving phenomenal growth in volumes and profitability, we have managed to reduce our net working capital, optimised our debt profile and continue to maintain strong liquidity position,” Vagadia said.

As India’s largest wind turbine maker, Suzlon’s market share has risen to 32% from 26% last year. This comes at a time the wind energy segment is going through a flux following the steep fall in tariffs in the wind auction held in February. A number of discoms have since shown reluctance to sign power purchase agreements at formerly agreed tariffs.

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