Suzlon Q3 net nearly doubles on higher global orders

EUROPEAN EXPANSION

Suzlon Energy said on Tuesday its standalone third quarter net profit nearly doubled on higher orders to Rs 338 crore, as compared with Rs 176 crore in the corresponding quarter a year ago.

The company's fifth largest wind turbine maker clocked Rs 1,655 crore in sales, a 50 per cent growth over the Rs 1,106 crore in the year-ago period.

"While the wind power industry grew 20-25 per cent in 2007, Suzlon posted a higher growth," said Tulsi R Tanti, chairman and managing director.

"Growth in the US and new orders from Australia, Latin America and Europe helped us post good results." Suzlon has an order-book of Rs 17,016 crore for 3,357 mw, which includes Rs 2,404 crore (441 mw) orders from the domestic market. Sales have grown 66 per cent in the calendar year 2007 to about 2,725 mw, from 1,637 mw in the previous year.

Consolidated figures showed 17 per cent lower profit after tax at Rs 142.84 crore in the third quarter, against Rs 172.72 crore. Income from operations in the period was Rs 3,170 crore, 66 per cent higher than the Rs 1,914 crore last year.

The company said consolidated figures were not comparable, considering that quarter-on-quarter revenues of REpower Systems which it acquired in June 2007 were not included.

The wind turbine generator segment contributed Rs 2,608 crore for the quarter, 81 per cent higher than Rs 1,443 crore in the previous corresponding quarter. Gear box manufacturing contributed Rs 569 crore in the period, 26 per cent higher than the Rs 453 crore in the previous corresponding period.

Tanti said Suzlon's capex plans were on track, to take its capacity to 5,700 MW from 2,700 MW with an investment of Rs 2,900 crore in India. REpower is investing euro 50 million (Rs 290 crore) and Hansen is investing euro 950 million (Rs 5,527 crore) to expand facilities in Belgium, China and India.

Suzlon shares gained eight per cent (or Rs 26.25) on the Bombay Stock Exchange on Tuesday to close at Rs 341.15.