Suzlon Energy at 5% LC

Suzlon Energy posted a dismal set of earnings for Q4FY20. With volumes dropping from 147 MW to a mere 11 MW (YoY), net revenue fell 55% to Rs.643 crore.

The company posted an operating loss of Rs.150 crore v/s profit of Rs.15 crore. This was mainly because the WTG (Wind Turbine Generator) business, was almost at a standstill resulting in under-absorption of overheads and certain non-recurring costs.

A 31% rise in depreciation and interest outgo rising 22% due to defaults and NFB/SBLC invocation pushed the company to a net loss of Rs.834 crore v/s Rs.295 crore loss in previous Q4. There was also a forex loss of Rs.217 crore.

Not surprisingly, the stock is currently among the top three losers on the BSE. The stock, which had closed yesterday at Rs.5.61, opened at its 5% LC of the day at Rs.5.33 where it now stays frozen.