Suzlon Energys net loss narrows 3.18% to Rs 782 cr

Written by feBureau | Pune | Updated: Oct 31 2013, 10:26am hrs
Wind turbine maker Suzlon Energy on Wednesday reported a 3.18% reduction in its net loss at Rs 782 crore for the second quarter of FY14. The company had incurred a loss of Rs 807 crore in the same period last fiscal.

Total income during the period declined 16.49% to Rs 4,808 crore, compared with Rs 5,758 crore in the corresponding period last year while sales revenues were down by 16.36% to Rs 4,769 crore.

Kirti Vagadia, group head of finance, said the company reported a significant net loss primarily driven by lower volumes, the impact of the depreciating rupee and restructuring costs. This is the eighth straight quarter of losses for Suzlon.

On the operational front we are making progress but the net loss was because of lower volumes and costs incurred on restructuring at REpower, Vagadia said.

But excluding the forex losses, the group Ebitda was positive for the first time after five quarters of negative Ebitda, Vagadia told FE.

The Group Ebitda was at Rs 39 crore and this was because of improvement in execution, steady ramping up of volumes, reduction in manpower and operational expenses, he said. REpower has been profitable every quarter at the Ebitda level, he said. If there is an increase in the volumes then the companys numbers will be different and for Suzlon there is no shortage of good orders so the key will be execution, Vagadia said.