July 31, 2008

Suzlon Reports High Revenue and EBIDTA Growth in Q1

- Revenue Growth of 42% YoY
- EBITDA margin improves from 7.83% to 15.36%
- PAT impacted by INR 146 cr. notional fx loss on FCCB

Mumbai: Suzlon Energy Limited, the world’s fifth largest wind turbine maker with
global market share of 10.5%, announced results for the quarter
ended June 30, 2008, reporting 42% growth in revenues and strong
improvement in EBITDA margins. The company reported consolidated
sales revenue of INR 2,760.46 crore in first quarter of FY09, compared to INR
1,944.63 crore in the first quarter of the previous year.

“We have achieved growth in revenues of 42% mainly through improved Sales
Realization, largely as a reflection of scope, currency appreciation, product and market
mix. This is despite the seasonal low volumes; usually the first quarter contributes
only a small percentage of planned annual volumes in the wind business,” said Mr.
Toine van Megen, CEO – Suzlon Energy Limited.

Suzlon reported a strong order book (excluding Hansen and Repower) position of INR
16,491 crore (3,040 MW); with INR 1,449 crore (267 MW) in domestic orders, and INR
15,042 crore (2,772 MW) in international orders, as on July 30, 2008.

Commenting on the results, Mr. Tulsi R. Tanti, Chairman and Managing Director
of Suzlon Energy Ltd., said: “We have demonstrated strong performance at group
level. However, accounting rules require us to make us provision for foreign exchange
translation loss of Rs. 146 crores from our FCCB of USD 500 million. These funds have
been deployed to purchase shares of European wind turbine maker Repower. Since
these are Euro denominated assets accounting for any rupee-dollar translation loss on
the borrowing is one-sided and entirely notional.

“We believe Suzlon’s fundamentals are very strong, since, the opportunity for
renewable energy is immense with the increasing cost of fossil fuels and its
diminishing supplies. With our comprehensive product portfolio, end-to-end solutions,
technology-focus, market mix and fully vertically integrated value chain – we are
poised to continue our industry beating growth. In addition, our 3,000 MW capacity
expansion plan is progressing on track. ”

Key Developments:

REpower: Consolidation of holdings
Suzlon in June acquired Areva’s total stake of approx 30% in REpower Systems AG,
Germany. This acquisition consolidates Suzlon’s total holding in REpower to
approximately 66%. Suzlon also enjoys voting rights of approximately 89% through
its voting pool agreement with Martifer of Portugal, the other major shareholder in
Repower.

DLF: One of the largest orders ever in India
Suzlon secured one of the largest orders in India for 71 turbines, each of 1.50 MW,
totaling 106.5 MW of capacity from the DLF Group. With this repeat order the total
portfolio of Suzlon turbines to DLF will reach 256.50 MW.

The order, once commissioned, will make DLF the owner of the largest single wind
portfolio in the country, reflecting a growing commitment of corporations to wind and
renewable energy, and the increasing competitiveness in comparison with conventional
fossil fuels. 


Contact Us

Murlikrishnan Pillai
Tel: +91 (20) 67025000
E-mail: ccp@suzlon.com