Suzlon

Suzlon posted a “turnaround” in its Q1FY16 performance but this back-to-the-black was possible only on account of a one-time gain of Rs.1314 crore. This was on account of gain on disposal of subsidiary and reversal towards impairment charges. Thus the company had a loss before tax at Rs.280 crore but after adding on this gain, it posted a consolidated net profit of Rs.1047 crore v/s loss of Rs.751 crore (YoY). It even had a tax write back of Rs.15 crore.

During the quarter the company had a net sales of Rs.2606 crore, down 44% and thanks to lowering of costs – 96% of total sales in current Q1 v/s 102% in previous Q1, with raw material costs down 20%, the company posted an EBITDA of Rs.212 crore v/s Rs.74 crore in previous Q1.

The company is not yet out of the woods but most certainly on its way to the good roads. During the quarter, it delivered highest quarterly volumes (205 MW) in India since FY12. Its net order intake during the quarter was at 188 MW, up 28% YoY, 69% QoQ. Its current order book stands at 1.1 GW worth Rs.6,839 crore. Debt has come down but still remains high - net debt is at Rs.7,010 crore, excluding foreign currency convertible bonds worth over $300 million.