Suzlon profit up 22%

Suzlon Energy, the country's largest wind turbine maker, posted a 22 per cent increase in net profit to Rs 437.82 crore for the quarter ended March 2007, though sales during the period were up 33 per cent to Rs 2,055.48 crore.

The lower-than-expected performance - attributable to an appreciating rupee and slippages in orders - saw the company's share price tumble 9 per cent on the Bombay Stock Exchange (BSE) on Tuesday to close at Rs 1,138.30 against its Monday's closing price of Rs 1,250.90.

During the year ended March 2007, the net profit increased 29 per cent to Rs 1,061.14 crore while the net sales were up 42 per cent from Rs 3,788.46 crore to Rs 5,380.37 crore. The earnings per share increased to Rs 36.80 during the period from Rs 30 in 2006.

The company's earnings before interest, depreciation, taxes and amortisation (EBIDTA) during the year were up 30 per cent to Rs 1,194 crore though the EBITDA margins at 17 per cent were under pressure and lower than the expected 20-23 per cent.

The company was however confident of improved margin with an increase in the sales volumes. It is expanding capacities from the current 2,700 mw to 4,200 mw by March 2008 and already has an order book worth Rs 9,487 crore.

It is also spreading its currency and market risk by expanding operations across four geographies, India, China, US and Europe. The group's Chief Managing Director Tulsi Tanti said 52 per cent of the company's revenues came from the domestic market for the just concluded year.

"This ratio is expected to switch to 20:80 in the next three years," he added. Suzlon has announced a 50 per cent dividend for the concluded financial year. The company had announced a similar dividend in 2006.

On a consolidated basis (including the numbers of the recently acquired Belgian gearbox maker, Hansen Transmission International ), the group's January-March net profit fell 3.4 per cent to Rs 358.98 crore from Rs 375.26 crore in the corresponding quarter last year.

Tanti said Hansen's current capacity of 3,800 mw would be expanded (in its Belgian unit) to 5,800 mw.