Suzlon Energy reports Rs 670 crore net profit in September quarter

Suzlon Energy has posted a consolidated net profit of around Rs 670 crore in the September quarter mainly due to lower expenses.

The company had recorded a consolidated net loss of over Rs 777 crore in the quarter ended on September 30, 2019, showed a BSE filing at midnight on Tuesday.

Total income of the company dipped to Rs 736.70 crore in the quarter from Rs 817.45 crore in the same period a year ago.

Total expenses of the firm came down to Rs 886.43 crore in the quarter from Rs 1,551.16 crore in the same period last year.

About COVID-19 pandemic, it said that the group's ability to generate sufficient cash flows to meet its financial obligations in the foreseeable future could be impacted by the undetermined circumstances arising from the pandemic.

Ashwani Kumar, CEO, Suzlon Group said in statement, Q2 of FY21 was the first quarter post closure of our debt restructuring process. This quarter marked the restart of our operations and entry back into the market amidst the constraints of COVID-19. I am encouraged by the financial performance of our operations and service business in these challenging times."

The finance cost of the firm came down to Rs 197.36 crore in the quarter from Rs 300.07 crore in the same period last year.

Kumar further said, "Overall, despite the ongoing challenges, I remain confident of growing momentum in the coming months... We are particularly enthusiastic about forthcoming bids being conducted by SECI for RTC (round the clock) renewable energy power and wind-solar-storage hybrid power procurement. We see this as the next phase of growth in the renewable energy market in India.

Swapnil Jain, CFO, Suzlon Group saidin the statement, In the Q2 results, we again see a clear improvement in EBIDTA over last year. Our focus on controlling operating and fixed cost as well as reduction in finance costs is reflected in our P&L performance.

Pursuant to our debt restructuring which was implemented in June 2020, part of our debt was converted to optionally convertible debenture (OCD) and compulsorily convertible preference shares (CCPS) which are recorded at fair valuation in liabilities of the company and the balance has been credited to other equity."

Jain further informed," Our manufacturing operations have resumed with six facilities starting production in line with all precautions of the COVID-19 protocol and the pace is picking up. This quarter we also restarted supply of our turbines.

The company's service business continues to do well and all its wind farms have been functioning without interruption. SE Forge, its forging and foundry business, is also securing good orders. The impact of our operational progress will be felt in the coming quarters, Jain added.