Suzlon Energy spurts after turnaround Q1 results

Suzlon Energy jumped 13.07% at Rs 17.30 at 14:05 IST on BSE after the company reported consolidated net profit of Rs 49.08 crore in Q1 June 2017 compared with consolidated net loss of Rs 263.40 crore in Q1 June 2016.

The result was announced after market hours on Friday, 11 August 2017.

Meanwhile, the S&P BSE Sensex was up 283.38 points, or 0.91% at 31,496.97. The S&P BSE Mid-Cap index was up 349.20 points, or 2.32% at 15,385.53.

High volumes were witnessed on the counter. On the BSE, 1.65 crore shares were traded on the counter so far as against the average daily volumes of 71.58 lakh shares in the past one quarter. The stock had hit a high of Rs 17.70 and a low of Rs 16.20 so far during the day. The stock had hit a 52-week high of Rs 22.25 on 22 May 2017 and hit a 52-week low of Rs 12.47 on 9 November 2016.

The stock had dropped 23.11% in eleven sessions to settle at Rs 15.30 on 11 August 2017, from a close of Rs 19.90 on 27 July 2017, ahead of the results.

The stock had underperformed the market over the past one month till 11 August 2017, falling 20.93% compared with the Sensex's 1.68% decline. The stock had also underperformed the market over the past one quarter, declining 28% as against the Sensex's 3.18% rise. The scrip had also underperformed the market over the past one year, falling 7.83% as against the Sensex's 12.04% rise.

The mid-cap company has equity capital of Rs 1058.16 crore. Face value per share is Rs 2.

Suzlon Energy's net sales jumped 61.7% to Rs 2665.26 crore in Q1 June 2017 over Q1 June 2016.

P Chalasani, Group CEO, said that the company continues to achieve profitable growth as evidenced by the 4th consecutive quarter of delivering net profit. The company is confident this momentum will continue. The transition from FiT to competitive bidding has created temporary volatility in terms of volume and margins. In the long‐term, all stakeholders will benefit from higher volumes. The company has commissioned next generation turbine, the S111‐140 meters which will establish new performance benchmarks, he added.

The order book stood at Rs 7757 crore. Order book as on 30th June 2017 stands at 1,169 megawatts. Consolidated customer advance stands at Rs 945 crore which reflects the good quality of order backlog.

The Suzlon Group is one of the leading renewable energy solutions providers in the world with an international presence across 19 countries in Asia, Australia, Europe, Africa and North and South America.

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