February 14, 2014
Suzlon Group 9M FY14: Performance Update
- Total revenues at Rs 13,631 cr/~US$ 2,188 mn for 9M FY14 o Rs. 5,010 cr /~US$ 804 mn in Q3 FY14, 25% YoY growth
- Net working capital reduced to 8.3% of sales at Q3 14
- Strong order momentum: Rs 8,611 cr in new orders over Q3 14
- Suzlon Group reaches ~23.5 GW in cumulative installed capacity
o Suzlon India installations cross 8 GW
o Senvion installations cross 10 GW worldwide
- India OMS to be reorganized into separate company within Group
- Group-subsidiary REpower Systems SE rebranded Senvion SE
- Strengthening offshore portfolio, launched 6.2M152 turbine
Pune: Suzlon Group, the worlds fifth largest* wind turbine maker, on Friday, February
14th 2014, announced its results for the third quarter (Q3) of financial year 2013-14.
Mr Tulsi Tanti, Chairman Suzlon Group, said: While we have made important
progress on some fronts, this has been a disappointing quarter in terms of operating
performance, and there remains much work to be done.
We are strategically positioning the business to take advantage of new
opportunities, and as part of this, we are reorganizing our India Operations and
Maintenance Services vertical into a separate company. The step will help build on
our long track record of best-in-class service, value added services and focus on
customer excellence; and also be able to independently scale to respond to new
growth opportunities in this space. With the global wind market independently
projected to come back strongly over the next year, particularly with India expected
to achieve over 30 per cent growth with the reinstatement of GBI, we see a strong
outlook for the sector and for the Group.
Mr Kirti Vagadia, Group Head of Finance, said: This has been another very
challenging year for the Group, with difficult external conditions acting as a
constraint on performance. However, key indicators have started to move in the
right direction. We have booked 913 MW of new orders over the quarter, aggregating
Suzlon Energy Limited One Earth, Hadapsar, Pune 411 028, India
Registered Office Suzlon, 5, Shrimali Society, Navrangpura, Ahmedabad 380 009, India
nearly 1.7 GW over the first nine months, underscoring customers confidence in the
company, and giving us good visibility into the near and medium term.
Key updates
? New equity issuance: The Board approved preferential issue of equity shares to
Promoters to an extent of Rs 45 cr.
Additionally, the Board approved the preferential issue of equity shares up to an
extent of Rs 80 cr.
The Board also approved an Employee Stock Purchase Scheme (ESPS 2014) for
up to 1.5 cr shares, and the Employee Stock Option Plan (ESOP 2014) for up to
4.5 cr shares, for employees of the Company and its subsidiaries.
The new shares issued will be subject to approval by shareholders, and subject to
lock-in in terms of SEBI Regulations.
Performance: Suzlon Wind achieved aggregate volumes of 546 MW for 9M FY14
a 128% per cent growth year-on-year, and crossed 8 GW of installations in
India. Senvion achieved revenues of ~EUR 1.2 bn over 9M FY14, and crossed 10
GW and 5,000 turbines in cumulative global installations.
The company continued to work towards optimizing its Working Capital ratio, with
a focus on realizations, leaner inventory cycles, and expediting order execution,
taking the ratio down to 8.3 per cent of sales as at December 13, compared to
13.6 per cent as at March 13. Consolidated Operating Expenses were reduced by
17 per cent for the 9M FY14 period with stringent cost control measures in place.
Manpower optimization also continued under Project Transformation, with a
Group-wide reduction of ~1,900 employees in 9M FY14, in addition to reductions
of over ~1,500 employees in FY13.
Orderbook: The consolidated Group orderbook stood at 5.5 GW, approximately
Rs 47,393 cr / US$ 7.7 bn in value, with an intake of 913 MW over Q3 FY14,
valued at approximately Rs 8611 cr / US$ 1,382 cr.
Exceptional / One-time costs: One time exceptional stood at Rs 455 cr / US$
73 mn (after EBITDA), and losses due to unfavourable currency fluctuations
added Rs 316 cr / US$ 50.7 mn. during 9M FY 14
FCCB: The Company continues to be in active, solution-oriented dialogue with
FCCB-holders, their advisors, and our senior secured lenders.
Suzlon Energy Limited One Earth, Hadapsar, Pune 411 028, India
Registered Office Suzlon, 5, Shrimali Society, Navrangpura, Ahmedabad 380 009, India
? REpower is now Senvion: Suzlon Group-subsidiary REpower Systems SE
changed its name to Senvion SE. The Hamburg-based wind turbine manufacturer
will now identify itself worldwide using the new brand. The company has been
using the name REpower under license from a Swiss company since 2001.
? New product: Senvion unveiled its latest offshore turbine, the 6.2M152,
featuring a rotor diameter of 152 metres. The larger rotor diameter compared to
the last generation the 6.2M126 (126 metres) achieves an increase in energy
yield by up to 20 per cent at wind speeds of 9.5 m/s. With a rated power of 6.15
megawatts, each Senvion 6.2M152 turbine can supply around 4,000 homes with
electricity.
Notes to the Editor:
- BTM Consult ApS A part of Navigant Consulting World Market Update
- US$ 1 = INR 62.31
