Suzlon Q1 consolidated loss widens 25 pc to Rs 1,059 cr
Mumbai: Troubled wind turbine-maker Suzlon Friday said its consolidated net loss in the June quarter widened by 24.72 percent to Rs 1,058.9 crore on forex losses that also pulled down its overall revenues.
The company had reported a net loss of Rs 848.97 crore in the corresponding quarter of previous year.
Its revenues for the quarter under review declined 18.86 percent to Rs 3,851.45 crore from Rs 4,746.72 crore in the year-ago period.
"On the operational front, real progress has been achieved. While our financial performance was impacted by the exceptional depreciation of the rupee, and we incurred one-time costs related to restructuring at REpower, we achieved steady progress on key operating indicators," group finance head Kirti Vagadia said in a statement.
The company incurred notional foreign exchange losses totalling around Rs 155 crore or USD 26 million, due to the extraordinary depreciation of the rupee against the dollar and the euro.
Suzlon also booked exceptional costs for its restructuring programme worth Rs 136 crore or USD 23 million, the release said.
With a total focus on execution, the company delivered near-normal volumes, compared to historic performance, at the Suzlon wind-level, Vagadia said.
"However, as Q1 is also the lowest volume quarter in a fiscal for our business, resulting in an under-absorption of fixed costs having a negative impact on the bottom-line," he said.
"We continue to bring down fixed costs. We have achieved a 31 percent reduction in our operating expenses compared to the last quarter. We also continued to bring down the working capital-to-sales ratio to 11.4 percent at the end of Q1, from 13.6 percent. Our non-critical asset divestment programme continues to be on track."
During the quarter, the company delivered turbines with generation capacity of 219 MW, a 46 percent increase over volumes in Q1 of the last fiscal and an 88 percent of total volumes achieved in FY13.