Suzlon announces lower Q4 FY21 loss; reports Rs103.59-cr profit for full fiscal
05 Jul 2021
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Suzlon Group, India's largest renewable energy solutions provider, has reported a consolidated net loss of Rs54.25 crore in the quarter ended 31 March 2021, against a net loss of Rs834.22 crore in the quarter ended 31 March 2020, according to a regulatory filing.
The reduction in net loss comes mainly on the back of higher revenues. Total income of the company rose to Rs1,141.15 crore in the January-March 2021 quarter, from Rs658.89 crore in the same period a year ago.
For the financial year 2020-21, however, the company posted a consolidated net profit of Rs103.59 crore, whereas it had reported a consolidated net loss of Rs2,691.84 crore in 2019-20. Total income during the fiscal rose to Rs3,365.59 crore, from Rs3,000.42 crore in 2019-20.
"It was an unprecedented and challenging year where economies around the world were impacted by the COVID-19 pandemic... The sector (wind energy) was restricted to low volumes with installations of only 1.5 GW, which is lower by almost 30 per cent from last year – amounting to only 15 to 18 per cent capacity utilization in India," Tulsi Tanti, chairman and managing director, Suzlon Group, stated in a release.
At the same time, total wind energy installations in India stand at 39.24 GW which is nearly 42 percent of the total renewable energy installations in the country, Tanti said, adding that the massive global push for renewables 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.
"For Suzlon, this was the first year of restarting our operations post debt restructuring. However, exponential increase in commodity prices like those of steel has impacted our profitability significantly in India," Ashwani Kumar, CEO, Suzlon Group said. "We closed the year with a healthy order-book of over 817 MW, which we aim to service this year, Kumar added.
The board of directors of Suzlon at its meeting on Tuesday also approved divestment of the company's 75 per cent stake in Suzlon Generators Limited (SGL), a subsidiary of the company, to Voith Turbo Private Limited or its associates, subject to customary due diligence, necessary approvals and execution of definitive documents. The SGL sale or disposal is expected to be completed by the second quarter of 2021-22 ((July-September).
The said buyer does not belong to the promoter / promoter group / group companies of Suzlon Energy Limited, the company said adding that the consideration (for stake sale in SGL) would be received post execution of definitive agreements. The company's 26th annual general meeting will be held on 24 September 2021, it stated.
The company also said that Suzlon Wind Energy Corporation, USA (SWECO), a step-down subsidiary of the Suzlon Energy, has filed for voluntary liquidation in the US Bankruptcy Court of the Northern District of Illinois, Eastern Division under Chapter 7 of the United States Bankruptcy Code and Federal Rules of Bankruptcy Procedure of the USA. "The board of SWECO took this decision in wake of continued financial stress sustained by its operations during the pandemic. We do not foresee this decision to have any direct and/or material impact on Suzlon Energy Ltd," it said.
