Suzlon Energy loss narrows to Rs 54 cr in March quarter

By: |
June 30, 2021 10:50 AM

For the financial year 2020-21, the company posted a consolidated net profit of Rs 103.59 crore, whereas it had reported a consolidated net loss of Rs 2,691.84 crore in 2019-20.

suzlon energyThe company's 26th Annual General Meeting will be held on September 24, 2021, it stated.

Suzlon Energy’s consolidated net loss narrowed to Rs 54.25 crore in the quarter ended March 31, 2021 mainly on the back of higher revenues. The consolidated net loss of the company was at Rs 834.22 crore in the quarter ended March 31, 2020, according to a regulatory filing. Total income rose to Rs 1,141.15 crore in the quarter, from Rs 658.89 crore in the same period a year ago. For the financial year 2020-21, the company posted a consolidated net profit of Rs 103.59 crore, whereas it had reported a consolidated net loss of Rs 2,691.84 crore in 2019-20.

Total income during the fiscal rose to Rs 3,365.59 crore, from Rs 3,000.42 crore in 2019-20. “”It was an unprecedented and challenging year where economies around the world were impacted by the COVID-19 pandemic… The sector (wind energy) was restricted to low volumes with installations of only 1.5GW which is lower by almost 30 per cent from last year which amounts to only 15 to 18 per cent capacity utilization in India,” Tulsi Tanti, Chairman and Managing Director, Suzlon Group said in a statement.

Despite that, total wind energy installations in India stand at 39.24GW which is nearly 42 per cent of the total renewable energy installations in the country, Tanti added. He exuded confidence that massive global push for renewables post COVID-19 and the government’s thrust on ‘Make in India’ and ‘Aatmanirbhar Bharat’ will help Suzlon manufacture wind turbines and its components for the sector as a whole in the future and reduce imports while creating long term sustainable jobs and energy security.

Ashwani Kumar, CEO, Suzlon Group said “for Suzlon, this was the first year of restarting our operations post debt restructuring. However, “exponential increase in commodity prices like those of steel has impacted our profitability significantly in India,” he noted. “We closed the year with a healthy order-book of over 817 MW which we aim to service this year,” Kumar added.

Meanwhile, the board in its meeting on Tuesday also approved divestment of the company’s 75 per cent stake in Suzlon Generators Limited (SGL), a subsidiary of the company, to Voith Turbo Private Limited or its associates, subject to customary due diligence, necessary approvals and execution of definitive documents.

The SGL sale or disposal is expected to be completed by the second quarter of 2021-22 ((July-September). The said buyer does not belong to the promoter / promoter group / group companies of Suzlon Energy Limited, the company said adding that the consideration (for stake sale in SGL) would be received post execution of definitive agreements.

The company’s 26th Annual General Meeting will be held on September 24, 2021, it stated. The company also said that Suzlon Wind Energy Corporation, USA (SWECO), a step-down subsidiary of the Suzlon Energy, has filed for voluntary liquidation in the United States Bankruptcy Court of the Northern District of Illinois, Eastern Division under Chapter 7 of the United States Bankruptcy Code and Federal Rules of Bankruptcy Procedure of the USA on June 29, 2021.

“The board of SWECO took this decision in wake of continued financial stress sustained by its operations during the pandemic. We do not foresee this decision to have any direct and/or material impact on Suzlon Energy Ltd,” it said.

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