July 25, 2014
Suzlon well positioned to capitalize on the market opportunities
- Consolidated revenue of Rs. 4,643Crs in Q1 FY15 (a21% YoY growth)
- 2nd Consecutive Quarter of Positive EBITDA at the consolidated level
- Cross margins improved from 29.1% to 33.5%
- Reinstatement of AD policy will bolster growth for the wind energy sector
- Strong order book at ~ 4.9 GW, valued at US$ 7.0 bn
Pune , India: Suzlon Group, the worlds fifth largest* wind turbine maker, on Friday 25th July
2014, announced its results for the First Quarter of financial year 2014-15 (FY15).In Q1
FY15.Suzlon posted its 2 nd Consecutive quarter of positive EBITDA at consolidated level
reaffirming its improved performance.
Mr Tulsi Tanti, Chairman Suzlon Group, said:The recent Union Budget includes several
policy measures which will have a positive impact on the wind energy sector in India. Suzlon is
well positioned to tap these opportunities by leveraging on its strengths
We stand committed to build on our technological edge and offer new age products and best in
class services. We are confident that our business will add value to the energy security needs of
our country.
Mr Kirti Vagadia, Group Head of Finance, said: We are pleased to post a positive EBITDA for
the 2nd consecutive quarter at the consolidated level, primarily driven by a focus on profitable
markets and product mix. We continue to maintain a strong order book at ~4.9GW, valued at
US$7.0 bn. On the liability management front, we have successfully completed the last leg with
the restructuring of FCCBs.
Key Highlights of Q1FY15
1. Suzlon Group :Performance Update
- Second consecutive quarter of positive EBITDA
o Consolidated revenue Rs. 4,643 Crs in Q1 FY15( 21% YoY growth)
o Improved gross margin from 29.1% to 33.5%
o Sustained increase in Sales volumes at Suzlon Wind
2. Senvion
- Senvion remains our marquee asset
o Continued stable performance
o Revenue up by 8.5% YoY growth
Some key projects completed: o 131 MW Mt. Mercer wind farm: Installation of 64 turbines completed
o 295 MW NordseeOst Offshore wind farm: Installation kicked off
o 107 MW Bald Hills wind farm: Installation kicked off
o 122 MW Zuidlob onshore wind farm: Largest onshore wind farm by Senvion
3. Order Book
Continues to be strong at ~ 4.9 GW, valued at US$ 7.0 bn
o Onshore markets - Emerging Markets: ~US$ 1.1 bn ( India, Brazil & Uruguay), Developed Markets: ~ $4.7 bn
o Offshore US$1.2 bn
4. FCCB restructuring successfully completedleading to a strengthened balance sheet
- Suzlon Bondholders across all four series approved FCCB restructuring proposal
o Issue of new Foreign Currency Convertible Bonds (FCCBs): USD 547 million maturing in July, 2019
o Conversion price of Rs 15.46 per share
o Sub 5% Yield to maturity (YTM)
5. Conducive Policy Environment :
- Accelerated Depreciation (AD
o Withdrawn in March 2012, reintroduced in July 2014
o Brings back SME interest ,Captive demand - GBI
o Withdrawn in March 2012, reintroduced in March 2013 & rules notified in Sept2013
o Rs.0.50/unit incentive to generators with a cap of Rs.1 cr/MW up from Rs.0.62 cr/MW
o Results in IPPs to focus on setting up new capacities
Access to low cost funding
o National Clean Energy set up to offer low cost funds
o Clean energy cess charged to coal users doubled to Rs.100/mt
o Fund to offer low cost funds to renewable projects via IREDA
Mandatory CSR
o Under new Companies Act, eligible companies to spend 2% of their average net profit on CSR activities.
o Renewable energy / WTG qualifies under mandatory CSR spend
Other incentives
o Fast tracking of implementation of Green Corridor will address evacuation constraints
o Long term funding for infrastructure projects (Up to 25 years)
o 4% SAD on parts and raw materials for WTG manufacturing removed
Key Priorities for Suzlon Group in FY15 :
? Ramping up volumes with a focus on the Indian market
? Improving business efficiency and
? Optimizing the capital structure
Notes to the Editor:
? *MAKE Report: Global Wind Turbine OEM 2013 Market Share
? US$ 1 = INR 60.19
