Suzlon Energy reports Q1 net loss at Rs 399 cr due to lower revenues
Suzlon Energy on Saturday reported widening of its consolidated net loss to Rs 398.86 crore in the April-June quarter compared to the year-ago period mainly due to lower revenues.
The consolidated net loss of the company was Rs 336.88 crore in the quarter ended on June 30, 2019, a BSE filing said.
Total consolidated income of the company declined to Rs 528.22 crore in the quarter under review from Rs 851.09 crore in the same period last year.
About the COVID-19 situation in the country, the company stated that the group’s ability to generate sufficient cash flows to meet its financial obligations in the foreseeable future could be impacted by the undetermined circumstances arising from the pandemic.
Suzlon Energy COO V R Tanti said the COVID-19 pandemic and the implementation of the debt restructuring which was completed on June 30, 2020, impacted the wind turbine generator (WTG) business in the first quarter.
“We have started securing new orders in Q1 and have a healthy order book of 867 MW. Despite the challenges of the COVID-19 lockdown, our Operations and Maintenance Service (OMS) business continues to deliver good performance and … forging and foundry business has also performed well.”
He further said, “The government’s focus on ‘Aatmanirbhar Bharat’ will boost domestic manufacturing in the wind sector and definitely benefit Indian wind turbine manufacturers like us.”
At an industry level there have been several positive developments with a slew of policy announcements, he mentioned.
The power ministry announced the extension of waiver of Inter-State Transmission System (ISTS) charges and losses on the supply of power generated from wind and solar sources until June 30, 2023.
No ISTS charges would be levied for 25 years and the same is also applicable to captive power projects, which will open up a new market segment.
Swapnil Jain, CFO, Suzlon Energy said in the statement, “In the Q1 results we see a clear improvement in EBITDA over last year, which is a testimony of the success achieved in controlling our fixed costs. As the Debt Resolution Plan was implemented at the end of Q1 FY21, the impact of the reduction in interest cost will be seen in the coming quarters.”
However, part of the interest cost on securities issued to the lenders would keep getting charged to the statement of profit and loss in future years which is notional, he said.
The company is now strongly positioned to resume the WTG business and execute the order book.
“We have also reorganised the business to suit the new market paradigm, which has helped in the significant reduction of our break-even levels making us even more competitive.