Suzlon Energy reports revenue of Rs 833 crore in June quarter

Suzlon-Energy

Suzlon Energy has reported net loss of Rs 336.88 crore and revenue of Rs 833 crore in the June quarter of 2019.

Suzlon Energy’s revenue was Rs 1,289.94 crore during the first quarter of fiscal 2018-19.

“We continue to witness slowdown, owing to the prolonged industry transition to the bidding regime and policy uncertainty in few states. Tariffs are stabilizing and the volume growth in the long-term augur well for sustainable growth of the sector,” JP Chalasani, group CEO of Suzlon Energy, said.

Total expenses of Suzlon Energy declined to Rs 1,178.39 crore in the April-June 2019 quarter as compared with Rs 1,866.04 crore in the year-ago period.

Suzlon Energy CFO Kirti Vagadia said: “Post default scenario, the company operations are at a sub-optimal level. We continued to focus on cost optimisation across the board including cost of goods sold (COGS), fixed costs, working capital and thereby curtailed losses in this lean period.”

The wind-turbine maker’s term debt is Rs 7,751 crores, while its working capital debt is Rs 4,000 crore.

The troubled Suzlon Energy earlier offered to repay about Rs 8,500 crore or $1.2 billion to lenders as part of a bad-debt-resolution plan, Bloomberg reported.

Creditors led by State Bank of India will have to take a haircut of as much as 44 percent on Suzlon’s debt if the offer is accepted. The settlement plan backed by Vestas Wind Systems is the only bid in front of lenders after Brookfield Asset Management Inc. dropped out of the race.

The Pune-based manufacturer has been embattled after the Centre shifted to auctions in 2017 as the preferred method to install wind projects. That has limited orders for domestic turbine manufacturers amid rising operational costs and stiffer competition from global players.

Suzlons long-term bank facilities were downgraded to D from BB in April by Care Ratings and the company missed payments on its dollar-denominated convertibles last month.