Suzlon's Q3 net loss widens to Rs 6,538 crore

Dilip Shanghvi invests Rs 1,800 crore in Suzlon

Debt-laden wind turbine maker Suzlon's Q3 net loss widened to Rs 6,538.68 crore on the back of sale of its overseas subsidiary Senvion.

The company had reported a loss of Rs 1,075.25 crore in the corresponding period a year ago.

Its total income declined marginally to Rs 4,977.18 crore during the October-December quarter as against Rs 5,052.2 crore in the third quarter of FY14.

"The huge loss during the quarter is on account of the notional loss to the extent of around Rs 6,000 crore on the sale of our overseas subsidiary Senvion last month," company chairman Tulsi Tanti told PTI here today.

Last month, the company sold Senvion to Centrebridge Partners LP for Rs 7,200 crore as part of its strategy to hive off non-core businesses and reduce debt burden of over Rs 17,000 crore.

"Most of the proceeds of this deal will be used to pay off our debt. Besides, we are also looking at selling stake in SE Forge, another non-core business," he said.

But he didnot disclose details about how much the company is expecting from the sale of the subsidiary.

"It is too premature to talk about this. But we will be using the funds raised through the sale for repaying our debt," Tanti said.

The company also sold stake in its manufacturing capacity in China as well as in US-based Big Sky wind farm. It also signed definitive agreements with Dilip Shanghvi Family and Associates (DSA) for equity investments of Rs 1,800 crore in Suzlon Energy.

"All the strategic initiatives are extremely crucial and will pave the way for our growth. These bold steps will strengthen our capital structure permanently, enabling significant de-leveraging and liquidity to ramp up volumes rapidly," he said.

The proceeds of both the transactions are expected to be received before March 31, he added.

Both Suzlon and Sanghvi will form a joint venture to develop 450 MW with farm, a move that will mark the latter's foray into the renewable energy business.

Besides, the Sanghvi Family and Associates will provide project specific non-fund capital for two years, which will be utilised for execution and capacity utilisation, Tanti said.