Suzlon net down 77% to Rs 236.48 cr

Written by Press Trust of India | Mumbai | Updated: Jun 30 2009, 04:39am hrs
The countrys largest wind turbine maker, Suzlon Energy, on Sunday reported a 77% decline in net profit at Rs 236.48 crore in FY09 on the back of currency losses and replacement of defective blades.

The companys net profit (after share in associates profit and minority interest) was Rs 1,030.10 crore in FY08. Revenues took a hit last year after some clients in the US canceled orders and the company undertook replacement of defective blades.

The blade retrofit programme is 80% complete. We are slightly behind schedule but expect it to be completed by August. We dont expect any more provisioning for the retrofit programme, Suzlon Energy chief operating officer Sumant Sinha told reporters here.

In the January-March quarter this year, the company had set aside Rs 100-crore for the blade replacement programme, Sinha said. Despite a challenging year, we have registered good growth at a consolidated level with sales growing to Rs 26,082 crore. There is an industry-wide slowdown in the immediate term, but I expect we will achieve 30% growth levels in 2011-12, Sinha said.

The consolidated revenues expanded 91% at Rs 26,082 crore in FY09 as against Rs 13,679 crore in the previous fiscal.

The Pune-based company has an order book position of Rs 7,901-crore as of June 25.

On a consolidated basis, we expect revenues in FY10 to be flat because the financial market has still not recovered completely. Interest rates are still high but we expect margins to improve a bit, Sinha said without giving an estimate.

The company recently undertook a liability management exercise for Foreign Currency Convertible Bonds (FCCB) of $500-million issued in 2007.