Suzlon reports Rs 782 crore loss

Wind turbine maker reports positive EBIDTA after over a year

Wind turbine maker Suzlon has lowered its consolidated net loss of Rs 782 crore for second quarter FY 2014 on the back of lower operating costs. The second quarter loss was three percent lower than  Rs 807 crore loss in Q2 of FY 2013.

Revenue declined 16 percent to Rs 4,769 crore  but the company was able to reduce operating expenses by 38 percent. The proportion of working capital to sales too declined and it reported a positive EBIDTA (earning before interest tax depreciation and amortisation) of Rs 31 crore  for the first time after five quarters.

“While we continue to progress on the operational front, we reported a significant net loss primarily driven by lower volumes, the impact of the depreciating Rupee, and restructuring costs. We are, however, pleased to report a positive EBITDA (net of forex) in Q2 after five quarters.

“We continue our focus on increasing volumes while optimizing fixed costs, opex and working capital, which will enable us to improve our financial performance,'' said Kirti Vagadia, Group Head of Finance of Suzlon.

Suzlon underwent Rs 9,500 crore corporate debt restructuring last year offering fresh capital and lowering interest burden. As a part of the exercise the company also agreed to sell some of its assets.

“Despite significant challenges our business is improving steadily. As part of our strategic initiatives, we have strengthened our product portfolio, adding a new turbine variant designed specifically for low wind sites in developed economies; we secured entry into Uruguay, one of the most promising Latin American markets; and, divested 75 per cent of our China subsidiary, converting it into a joint venture which helps us maintain a foothold in the world’s largest market,'' Suzlon chairman Tulsi Tanti said in a statement.