Suzlon Energy inches up after bagging new order

The announcement was made before trading hours today, 30 January 2013.

Meanwhile, the BSE Sensex was up 11.90 points, or 0.06%, to 20,002.80.

On BSE, 23.82 lakh shares were traded in the counter as against an average daily volume of 58.79 lakh shares in the past one quarter.

The stock hit a high of Rs 21.60 and a low of Rs 21.10 so far during the day. The stock had hit a 52-week high of Rs 32.35 on 10 February 2012. The stock had hit record low of Rs 14.75 on 31 August 2012.

The stock had outperformed the market over the past one month till 29 January 2013, rising 9.07% compared with the Sensex's 2.81% rise. The scrip had also outperformed the market in past one quarter, gaining 32.81% as against Sensex's 7.27% rise.

 

The mid-cap wind turbine maker has equity capital of Rs 355.47 crore. Face value per share is Rs 2.

As per the contract, Suzlon Energy will supply 24 units of the S88 - 2.1 megawatts (MW) wind turbine generators totalling 50.40 MW of capacity, install, operate and maintain the wind turbines for this end to end project, in the Jaisalmer district of Rajasthan.

Speaking on the order, Mr Ranjit Gupta, Co-Founder, Orange Renewable Power, said: "We see wind as a highly viable option with its techno-economic maturity and feel that Suzlon, with its technological expertise and proven market capabilities, is the right partner to achieve our objective to become an organization of excellence that provides best in class projects and services to the emerging renewable energy industry. We plan to develop and operate a portfolio of renewable energy assets, including wind, biomass, small hydro and solar, where each project would be crafted to deliver optimum value to all stakeholders."

Speaking on the order Mr Rohit Modi, CEO - India and emerging markets, Suzlon Energy Limited, said: "We are pleased to receive this order from Orange Renewable Power and look forward to partnering with the company in its ambitious plans for the wind energy sector in India. With growing participation and investment from domestic and international IPPs, the segment is already playing a pivotal role in accelerating the development of Indian wind energy market."

Suzlon said the S88 turbine is designed for operations in medium wind regimes with the ability to withstand extreme conditions and operate effectively with lower maintenance costs. The S88 has enjoyed international success, with over 2,400 units installed worldwide, translating to over 5 GW of capacity.

Orange Renewable Power is an emerging IPP promoted by a group of enterprising entrepreneurs and is based out of New Delhi. Orange Renewable Power is actively developing wind projects in India and abroad. The company is also developing a portfolio of Biomass Power Plants, of which 20MW are under construction in Karnataka. The company endeavours to develop and operate a basket of renewable energy assets including biomass, small hydro, wind and solar.

Suzlon Energy after trading hours on 24 January 2013, announced that it received the formal approval of its proposal for the restructuring of its domestic debt by the Empowered Group of Corporate Debt Restructuring (CDR) Cell. Suzlon Energy's domestic lenders, a consortium of 19 banks, approved the company's CDR package of about Rs 9500 crore ($1.8 billion). The package includes a two year moratorium on principal and term-debt interest payments; a three per cent reduction in interest rates; six month moratorium on working capital interest; as part of the package Rs 1500 crore ($270 million) (two year's interest payment during moratorium) will be converted into equity/equity linked instrument over the next two years to bring stronger financial stability; and, a 10 year door-to-door back-ended repayment plan. The package also includes an enhancement of working capital facilities, by approximately Rs 1800 crore ($ 350 million), allowing the company to accelerate the execution of its strong orderbook. The company's promoters will also bring in equity to the extent of Rs 250 crore into the company in stipulated time frame, of which Rs 62 crore has already been infused.

Suzlon Energy reported consolidated net loss of Rs 807.74 crore in Q2 September 2012, as against net profit of Rs 48 crore in Q2 September 2011. Net sales rose 12.4% to Rs 5702.23 crore in Q2 September 2012 over Q2 September 2011.

The Suzlon Group is ranked as the world's fifth largest wind turbine supplier, in terms of cumulative installed capacity, at the end of 2011. The company's global spread extends across Asia, Australia, Europe, Africa and North and South America with over 20,000 MW of wind energy capacity installed and operations across 32 countries and a workforce of over 13,000. The Group - headquartered at Suzlon One Earth in Pune, India - comprises Suzlon Energy and its subsidiaries, including REpower Systems SE.

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