Suzlon Q1 net loss at Rs 697 crore; revenues down 59%
Mumbai: Wind turbine maker Suzlon Monday reported a standalone net loss of Rs 696.64 crore for the first quarter ended June 30 due to lower volumes, adverse market mix, high interest burden and notional forex losses.
In the same quarter a year ago, the company reported a net profit of Rs 137.83 crore in the year-ago period.
The Pune-based company's standalone revenues also declined 59.36 percent to Rs 596.91 crore compared to Rs 1,469.07 crore in the corresponding period last year.
"The profitability was impacted mainly because volumes were significantly constrained by a shortfall in working capital facilities. Additionally, adverse market mix, a high interest burden and notional forex losses resulted in the company suffering losses for the quarter," Suzlon Group Chief Financial Officer Kirti Vagadia said in a statement here.
He said the firm suffered a foreign exchange loss of Rs 205.99 crore during the period. Pending projects were hit by the global economic slowdown, contributing to the losses.
"At present, we are in the process of enhancing our working capital facilities to execute our order pipeline and achieve our targeted 30 percent growth. We are working towards reducing our overall interest burden and are happy to report that some of our senior secured lenders have reduced our interest rates by 2.5 percent," he said.
"Our clear priorities for the fiscal are now to reduce fixed costs, drive volume execution, realise group synergies, improve working capital management and optimise balance sheet," he said.
Suzlon Group's order-book as on August 13 stood at 5.6 GW (valued at Rs 39,700 cr or USD 7.2 billion) with new firm orders of 456 MW and frame agreements of 200 MW.
Suzlon Group Chairman Tulsi Tanti said, "this has been a disappointing first quarter. The macroeconomic environment, policy uncertainties in some markets, along with other external factors such as the depreciating rupee continue to impact us. This will be a defining year for us, even as our sector continues to face a number of challenges."
The group met its commitments around its June series of FCCBs, fully redeeming the bonds through a combination of new credit facilities, internal accruals and the sale of windfarm assets in India, the statement said.
The company plans to raise USD 100-200 million by selling some "non-critical" assets this fiscal to pare its USD 2 billion debt, it added.