On a standalone basis, the Tulsi Tanti-controlled Suzlon plunged to a net loss of Rs183 crore from a profit of Rs483 crore a year earlier, as global demand slowed. Mark-to-market losses on foreign-exchange bets hurt earnings by Rs129 crore.

Announcing the results, Sinha said in Mumbai that demand from the US market had been hit badly, and added that the company is looking at reducing costs in the region to counter the slowdown. ''We are looking at rationalisation of costs, and that could include job cuts," he said.

The board approved a plan to raise as much as Rs5,000 crore through the sale of shares or debentures. ''It is an omnibus approval from the board so that we don't have to go back to them if we want to raise funds,'' Sinha said. He added that the company is trying to expand its footprint in South Africa.

''We are dealing with a very difficult external environment, where the wind industry has gone through a reasonably significant external correction. From a growth rate of about 30 per cent over the past several years, we are now moving to a situation where there will be a flat growth in the industry,'' Sinha warned.

Sinha also said Suzlon expects significant spare manufacturing capacity this fiscal, but did not say how much capacity will remain idle. He added that REpower Systems AG may not have much spare capacity, but again did not elaborate.

The sale of the stake in the Belgian maker of wind-turbine gearboxes, bought in 2006, could fetch $1.1 billion and help Suzlon reduce debt taken over the past two years to complete the acquisition of Hamburg-based Repower Systems AG this month.

Suzlon acquired Hansen's entire shareholding in March 2006 for 465 million euros. The stake decreased to 71 per cent after Hansen sold new shares to raise 440 million euros. London-based investment company Ecofin Ltd bought 10 per cent in Hansen for Rs500 crore last year.