Suzlon net rises 14%

Debt-laden wind energy major Suzlon Energy has posted a net profit of Rs 14.1 crore for the third quarter, ended December 31, 2009, against a net loss of Rs 64.87 crore in the third quarter of the previous last year.

Net sales of the company stood at Rs 5,590 crore for the quarter on a consolidated basis, 19.24 per cent lower than the Rs 6,922 crore for the third quarter of last year.

Suzlon, which sold 35 per cent stake of its Belgian subsidiary Hansen Transmission during the quarter, said its net debt had declined by Rs 3,274 crore during the quarter. It had debts worth Rs 13,762 crore in September 2009 and this fell to Rs 10,488 crore in December 2009.

“We continue to maintain a strong focus on reducing operating expenditure, improving operational efficiencies, reducing working capital and de-leveraging our balance sheet even further,” said Sumant Sinha, chief operating officer, Suzlon Energy.

Suzlon Chairman and Managing Director Energy Tulsi Tanti said the improving financial environment worldwide was driving a gradual recovery in the wind sector, which would continue through the next financial year.

The company said its order book (excluding subsidiaries Hansen and REpower) stood at 1,483.60 Mw, valued Rs 8,128 crore as on January 30. The company sold 327 Mw in India in the first nine months of 2009-10, and has a current order book position of 314.30 Mw for India. Its German subsidiary REpower has an order book of ¤1.7 billion as on December 31, 2009.

Suzlon said it was in advanced stages of completing a broad-based refinancing and consolidation of its debt facilities and solidifying a long-term sustainable capital structure. The company has done repayment and refinancing of acquisition loans worth $780 million, which was announced in December last year. A new, five-year $465-million loan from State Bank of India is already in place.