Suzlon reduces net loss in Q4, US unit files for bankruptcy

Indian wind turbine manufacturer Suzlon Energy Ltd (BOM:532667) on Tuesday reported a net loss attributable to shareholders of INR 570 million (USD 7.7m/EUR 6.5m) for its fourth quarter through March 2021, which is an improvement from an INR-8.24-billion loss a year ago.

Revenue rose to INR 11.2 billion from INR 6.43 billion.

In the full year, the company recorded a net profit attributable to shareholders of INR 1.03 billion against a loss of INR 26.42 billion in the previous year, and an increase in net revenue to INR 32.95 billion from INR 29.33 billion.

Chief executive Ashwani Kumar said this was a year of restarting the company's operations following debt restructuring. "While our installations remained low, our strategic imperatives for the year were restarting our manufacturing facilities, ensuring continuation of our OMS operations without interruptions and fulfilling the obligations of our debt restructuring," the CEO commented.

The company also said that a steep increase in steel prices and low tariffs for its customers have impacted profitability. It ended the year with a firm order book of 817 MW.

More details of Suzlon's performance.

Suzlon Group chairman and managing director Tulsi Tanti said the Indian wind energy sector has not been spared the impact of the COVID-19 pandemic. “The sector was restricted to low volumes with installations of only 1.5 GW which is lower by almost 30% from last year which amounts to only 15-18% capacity utilization in India,” he added.

Tanti is hopeful on the future, though. “Massive global push for renewables post COVID-19 and the Government’s thrust on ‘Make in India’ and ‘Aatmanirbhar Bharat’ will help Suzlon manufacture wind turbines and its components for the sector as a whole in the future and reduce imports while creating long term sustainable jobs and energy security,” he said.

Suzlon also announced that its step down subsidiary Suzlon Wind Energy Corp USA filed for voluntary Chapter 7 bankruptcy in the US on June 29 after “continued financial stress sustained by its operations during the pandemic.” The Indian company does not expect any direct or material impact from this bankruptcy.

(INR 100.0 = USD 1.345/EUR 1.132)

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