Suzlon sees robust sales in next 2 quarters

Wind-turbines manufacturer Suzlon today said that it expects its sales to be robust in the remaining two quarters of this fiscal.

"The outlook is bright. We expect healthy sales in the balance two quarters. Our strategy will be to enhance volumes, focus on our offshore business, develop further our emerging markets, reduce our opex and manage our working capital efficiently," Suzlon Energy's CFO Robin Banerjee told PTI.

Suzlon has completed its Rs 10,690 crore of debt refinancing.

"We will not have to repay our principal for the next two years. Six-months have passed and we have another 18 months to go," he said.

Prior to the refinancing, the company used to pay around Rs 1,000 crore as principal amount, he said.

On Hansen Transmissions in which it holds a 26 per cent stake, Banerjee said, "We have said we won't mind exiting the company. However, we will exit only if we get the right valuations."

There is no time pressure on the company on the issue, he said.

In Q2FY11, Suzlon posted a consolidated loss of Rs 369 crore as against Rs 355.52 crore in the year-ago period.

"This includes a tax provision of Rs 132 crore," Banerjee said, adding, "without it, our profit would have been higher."

There was also a notional loss of Rs 125 crore (forex) which was not there in the same quarter last year, he said.

Highlighting the fact that opex costs were reduced significantly, Banerjee said that this has been reduced to Rs 738 crore in Q2 from Rs 1,000 crore in the year-ago period.

At the earnings before interest and tax (EBIT) level, the company has fared well with its EBIT in Q2 FY 11 at Rs 11 crore as against a loss of Rs 67 crore in the year-ago period, he said.

"Things are beginning to look-up and we are excited about the remaining two quarters," he said.