Total income from operations declined 54.6% to Rs 659 crore in the quarter under review from Rs 1,450 crore in the same period last year.
Stressed wind turbine maker Suzlon Energy’s net loss widened in the March quarter to Rs 834 crore due to fall in revenues and higher finance cost. The company had posted a net loss of Rs 295 crore in the same quarter during 2019. Total income from operations declined 54.6% to Rs 659 crore in the quarter under review from Rs 1,450 crore in the same period last year. Finance cost for the company surged 21% year-on-year (y-o-y) till March 2020.
The company also said that JP Chalasani has resigned as the group chief executive officer (CEO) of the company with effect from July 7, 2020. However, he will continue with the company as a strategic advisor, the company said.
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The consolidated net loss for the company in the full financial year 2019-20 remained at Rs 2,692 crore, against Rs 1,537-crore loss in 2018-19. Total income from operations in 2019-20 dropped 40% to Rs 3,000 crore from Rs 5,075 crore in 2018-19.
The company has recently concluded a debt restructuring deal with lenders. Swapnil Jain, chief financial officer (CFO) said, “Post-restructuring we will have an improved balance sheet in financial year 2021 (FY21), equipping us to ramp up execution of our order book.”
As per restructuring deal, the total debt of Rs 12,153 crore was divided into sustainable and unsustainable portion. The company agreed to pay sustainable debt of Rs 3,600 crore in 10 years at 9% per annum. The remaining unsustainable debt of Rs 8,553 crore was converted into optionally converted debentures and compulsory convertible preference shares. The company claims that restructuring will reduce more than 70% of interest burden, as majority of debt converted into nominal interest bearing instruments.