Suzlon posts first profit in 14 quarters as expenses halves

Suzlon Energy late Friday posted its first profit in 14 quarters as expenses nearly halved and the company made one-time foreign currency gains.

   The wind turbine maker posted consolidated net profit of Rs 10.47 billion for the second quarter ended on Jun 30 compared with lose of Rs 7.51 billion same period a year ago.

   The company's total income was Rs 26.27 billion in the quarter under consideration compared with Rs 46.72 billion in the year ago period, while its total expenses nearly halved to Rs 25.22 billion in the June quarter compared with Rs 47.77 billion same period a year ago.

  The company also made a one-time foreign exchange gain of Rs 777.5 million compared with lose of Rs 292.4 million a year ago.

  Suzlon also said its consolidated net Debt (excluding foreign currency convertible bonds) was down to Rs 70.10 billion from Rs 148.21 billion as of Mar 31, 2015. It has also said that it has brought down interest cost down by 36% quarter-on-quarter.

   The company also said its net order intake has risen 28% on-year and 69% on-quarter to 188 MW with order book standing at 1.1GW worth Rs 68.39 billion.

  The board of directors also approved the proposal to issue bonds to the extent of Rs 50 billion subject to shareholders' approval.

   "Our Q1 performance reflects our turnaround journey. Our strategic vision incorporates the government's renewable energy target of 175 GW by 2022 and the conducive policy landscape ... This year, we expect to supply 100 turbines of the S111," said Tulsi Tanti, chairman, Suzlon Group in the release to the exchanges.

   The board also appointment of Kirti J Vagadia as Group CFO with effect from Aug 1, 2015 after the current CFO Amit Agarwal resigned, the release said.

   Friday, share prices of Suzlon Energy ended at 21.90, unchanged from previous close on the Mumbai Stock Exchange.