Suzlon sees policy upside at Q1
Suzlon claimed it is well placed to benefit from recent wind-friendly policy changes in its Indian home market as it unveiled higher sales for the last quarter.
The Indian wind group posted revenues of 46.4bn rupees ($772m) for the April-June period, the first of its 2014-15 financial year, a 21% uplift on the same period in 2013.
Suzlon told investors its gross margin grew to 33.5% from 29.1% last time, and flagged a second consecutive quarter of positive earnings before interest, tax, depreciation and amortisation at the consolidated level.
The wind group’s net loss was 7.5bn rupees, down from the 10.6bn rupee Q1 deficit it posted a year ago.
Suzlon has spent the last year completing a lengthy restructuring of its finances, and is now keen to return to a growth phase. Today it said “ramping up volumes with a focus on the Indian market” is a key priority for the year ahead.
Chairman Tulsi Tanti said recent Indian policy announcements – including the reinstatement of the Accelerated Depreciation incentive – will aid the company’s cause.
“The recent Union Budget includes several policy measures which will have a positive impact on the wind energy sector in India,” Tanti said.
“Suzlon is well positioned to tap these opportunities by leveraging on its strengths.”
The company pointed to its 4.9GW, $7bn order book and the continued performance of German subsidiary Senvion – which it described as its “marquee asset” – as further reasons to enter the financial year with optimism.