Tanti – 'Much work to do' at Suzlon
Suzlon chairman Tulsi Tanti said there remains “much work to be done” at the Indian wind turbine giant – but insisted the company is moving in the right direction despite another hefty quarterly loss.
Suzlon posted a net loss of 10.7bn rupees ($173m) for the three months to December 2013, its financial third quarter, compared to 11.5bn at the same stage in 2012.
However, revenue for the quarter was 25% up year-on-year at just over 5bn rupees, Suzlon said. And the group booked 913MW of new orders in the quarter, adding up to 1.7GW so far this financial year, in what the group described as an “underscoring of customers’ confidence in the company”.
The consolidated group order book stood at 5.5GW at the end of the quarter, worth about $7.7bn.
Tanti said Suzlon is reorganising its Indian O&M business into a separate company inside the group to take advantage of “new growth opportunities” he expects to see in the domestic market.
Tanti said: “While we have made important progress on some fronts, this has been a disappointing quarter in terms of operating performance, and there remains much work to be done.”
But he said there is reason to be optimistic. “With the global wind market independently projected to come back strongly over the next year, particularly with India expected to achieve over 30% growth with the reinstatement of the GBI [generation-based incentive], we see a strong outlook for the sector and for the group.”
The company said it is still in negotiations with its bondholders and other lenders over its debt situation.
Suzlon – which owns the Germany-based Senvion (formerly REpower) – said it cut its operating expenses by 17% in the first nine months of the financial year.
It said about 1,900 employees left the group in the nine months, adding to the 1,500 removed from its books the previous financial year.