Suzlon Energy Q1 net loss expands to Rs 398 cr

The wind turbine maker posted a consolidated net loss of Rs 398.34 crore in Q1 June 2020, higher than net loss of Rs 336.70 crore reported in Q1 June 2019.

Net sales stood at Rs 512.67 crore in Q1 June 2020, a 39% decline over Rs 833 crore in the same period last year. Revenues declined primarily due to low volume. The company said Covid-19 pandemic and implementation of debt restructuring impacted wind turbine business in first quarter of FY21.

Suzlon posted a pre tax loss of Rs 397.24 crore in quarter ended June 2020, higher than Rs 335 crore in the corresponding period last year. Tax expense declined 22% YoY to Rs 1.1 crore in Q1 June 2020.

Consolidated EBITDA jumped to Rs 91 crore in Q1 June 2020 from Rs 42 crore in Q1 June 2019. EBITDA margin improved to 17.7% in Q1 June 2020 from 4.9% in Q1 June 2019. EBITDA was boosted due to optimization of manpower and opex cost.

Swapnil Jain, CFO, said, "In the Q1 results we see a clear improvement in EBITDA over last year, which is a testimony of the success achieved in controlling our fixed costs. As the debt resolution plan was implemented at the end of Q1 FY21, the impact of the reduction in interest cost will be seen in the coming quarters. However, part of interest cost on securities issued to the lenders would keep getting charged to statement of profit and loss in future years which is notional. The company is now strongly positioned to resume the WTG business and execute our order book. We have also reorganised the business to suit the new market paradigm, which has helped in significant reduction of our break-even levels making us even more competitive."

The result was announced today, 29 August 2020. Shares of Suzlon Energy fell 1.29% to close at Rs 3.84 on Friday.

Suzlon Group is provider of renewable energy solutions with a global presence across 18 countries in Asia, Australia, Europe, Africa and Americas.

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