This renewable energy solutions provider stock has zoomed 625% in 15 months

Suzlon Energy rallied 5% to Rs 57.82, hitting an over 13-year high on the BSE in Tuesday's intra-day trade after the firm reported highest quarterly EBITDA in 7 years at Rs 370 crore in Q1FY25.

Shares of Suzlon Energy, one of the leading global renewable energy solutions providers, rallied 5 per cent  to Rs 57.82, hitting an over 13-year high on the BSE in Tuesday’s intra-day trade after the company reported solid set of June 2024 quarter (Q1FY25) results.

The company, on Friday post market hours, reported its highest quarterly earnings before interest, taxes, depreciation, and amortization (EBITDA) in 7 years at Rs 370 crore.

Currently, the stock was trading at its highest level since April 2011. It surpassed its previous high of Rs 56.45 touched on July 5, 2024. In the past 15 months, the market price of Suzlon Energy has zoomed 625 per cent from a level of Rs 7.97 on April 24, 2023.

The average trading volumes at the counter more-than-doubled, with a combined 132 million shares changing hands on the NSE and BSE till 10:12 am.

On Tuesday, shares of other renewable energy firms were also in demand ahead of the Union Budget 2024-25. Borosil Renewables had zoomed 11 per cent to Rs 532. Adani Green and Adani Power surged over 3 per cent each. Inox Wind gained 2 per cent.

Meanwhile in Q1FY25, Suzlon’s revenues came in at Rs 2,021 crore as against Rs 1,348 crore, up 50 per cent year-on-year (YoY). In terms of volume, the company executed 274 MW vs. 135 MW YoY.

The company reported a 3-fold jump in Q1FY25 consolidated net profit at Rs 302.29 crore, as compared to Rs 100.90 crore in the corresponding quarter a year ago. EBITDA margins came in at 18.4 per cent up 360 bps YoY. Current order backlog stands at 3817 MW vs 2929 MW QoQ.

“Our largest‐ever order book of 3.8 GW gives us great visibility for the future. With significant deliveries of our flagship product  series, 3.x MW S144 in Q1FY25, we are in a strong position to service our current order book,” the management said.

The Suzlon Group is one of the leading renewable energy solutions providers in the world with around 20.8 GW of wind energy capacity installed across 17 countries. A vertically integrated organisation, with in‐house research and development (R&D) centres in Germany, the Netherlands, Denmark and India, Suzlon’s world‐class manufacturing facilities are spread across multiple locations in India.

Suzlon is also India’s No. 1 wind energy service company with the largest service portfolio of over 14.8 GW in wind energy assets. The Group has around 6 GW of installed capacity outside India. Suzlon offers a comprehensive product portfolio led by the 2 MW and 3 MW series of wind turbines.

The group has a successful track record of project execution with technical expertise, evident from the healthy market share of 30-35 per cent in the wind turbine generators (WTG) business in India over the past many years and also in cumulative installed capacity.

The company’s healthy market position should help to obtain orders in the long run. The company has been able to overcome the dependence on customer-backed financing to execute orders, which had constrained growth in the last fiscal, according to CRISIL Ratings. The rating agency has the Positive outlook on the back of expectation that a healthy order book and delivery volumes will drive profitability of the WTG business.