October 23, 2007

Suzlon Reports Strong Q2; Highest ever Quarter Sales and Profits

• 74% Sales growth, 68% PAT growth YoY 
• Hansen Transmissions offering on London Stock Exchange* 
• Larger capacities planned, capex plans revised 
• Board proposes split of equity shares in the ratio 5:1

Mumbai: Suzlon Energy Limited (SEL), the world’s fifth leading and India’s largest
wind turbine manufacturer, reported strong results for the quarter ended September
30, 2007.

The company reported consolidated revenues of INR 3,641 crore, a 74% growth over
corresponding period of the previous year. Revenues from overseas sales stood at INR
2,232 crore, around 61% of total sales during the period. Profit after tax grew by 68% to INR
398 crore, and EPS by 68% to INR 13.70, over the corresponding period of FY2006-07. SEL's
consolidated order book stood at INR 16,328 crore (USD 4,106 ml), as on October 20, 2007.

“We are very pleased to report a record run for the company. The wind is blowing
stronger than ever! We have achieved the highest ever sales and profits at the
consolidated level for any quarter. We are planning significant new initiatives and
scaling up our earlier plans to fulfill our global ambitions. We are fully committed to
working towards mitigation of the climate crisis. And our rapid growth clearly shows
that the world is acting to meet this challenge,” Mr. Tulsi R. Tanti, Chairman and
Managing Director of Suzlon Energy Ltd., stated.

Suzlon reported a strong consolidated order book position of INR 16,328.04 crore
(3,250.55 MW); with INR 1,988.88 Crores (368.50 MW) in domestic orders, and INR
14,339.16 crore (2,882.05 MW) in international orders, as on October 20, 2007.

“Suzlon is growing across the world; a major force in all key markets. Our results
clearly demonstrate our position as a trusted and valued partner in wind around the
world. With our rich talent pool with its global expertise and experience, and a focused
globalization strategy, we are poised go grow faster than ever before,” said Mr.
Andre Horbach, CEO – Suzlon Group.

New orders in the first half of the year came from around the world, with a
breakthrough into the Turkish wind energy market with an order for 31.5 MW of
wind turbine capacity, to be supplied through 15 units of Suzlon’s S88 – 2.1 MW
turbine.

Suzlon repeated its success in Latin America, with signing a large new order in Brazil
with utility-major Servtec Instalacoses E Sistemas Integrados Ltda. for 155 MW of
wind turbine capacity.

Suzlon secured important successes in the Indian market as well, signing a major new
order with DLF Limited, one of India's leading infrastructure companies, for 150 MW
wind turbine capacity.

Suzlon maintained its aggressive drive in the US wind market with a contract for 400
MW of wind turbine capacity with Horizon Wind of Houston, Texas, the largest wind
turbine developers in the United States, owned by Portuguese utility EDP (Energias de
Portugal, S.A.), a leading renewable energy developer in the world.

Suzlon completed its maiden commissioning in Portugal, with six turbines of 2.1 MW
capacity and totaling to 12.6 MW put into operation in the Penamcor region of Portugal
for client TECNEIRA - Tecnologias Energeticas, SA, Portugal

Hansen Transmissions*:
Suzlon has today announced plans to prepare its subsidiary Hansen Transmissions
International NV ("Hansen") for an offering of shares to institutional investors and a
listing on the London Stock Exchange. Hansen is a leading global gearbox and drive
train designer, manufacturer and supplier to the wind turbine and other selected
industries.

In view of the rapid growth in global wind power generation, Hansen faces increased
demand for its products from wind turbine manufacturers worldwide. Hansen is
seeking to cater for this demand by undertaking a significant capacity expansion
programme, including the extension of its state-of-the-art integrated manufacturing
facility at Lommel, Belgium and the construction of further manufacturing facilities in
Coimbatore, India and in China.

Commenting on the announcement, Mr Tulsi Tanti, Chairman and Managing Director of
Suzlon Energy Limited, said: "Hansen Transmissions is a company with a long and
successful history which is now uniquely poised to build on its strong existing platform
as a leading participant in the wind energy market. Hansen’s already
announced expansion programme will enable it to provide support and technological
innovation to the wind industry, as expected demand grows over the coming years.
Hansen is set to play a key role in making wind energy an important part of the
world’s energy matrix.

"Hansen is managed as an independent business. With its excellent executive team
and strong business plans, we see Hansen as a global market leader in gearbox
technology."

Wind CapEx Plans:
With growing global demand for wind energy products, the company has expanded its
capex plans to meet its rapid growth in new and existing markets. Plans for the
integrated turbine manufacturing facility are being scaled up from the original target of
1,500 MW, to 3,000 MW. This will take the final global manufacturing capacity to 5,700
MW when complete. The facilities are also planned to be future-ready, with the
capability to build next generation turbines of large rated capacities that are in the
pipeline.

Component manufacturing facilities planned through the foundry, forging and
machining facility will also be expanded to meet the additional requirement for
gearbox and bearing parts

The facilities are scheduled to come online in a phased manner between Q1 and Q3
FY2008 – 09. Funding for capex will be through a mix of internal accruals, debt, quasiequity
and funds raised already through the Suzlon IPO in 2005-06.

Funding Approvals:
The Board also proposed the issuance of equity or quasi-equity to the extent of INR
5,000 crore. The company had previously secured approval from shareholders to the
extent of INR 5,000 crore, and utilized INR 2,000 crore. The proposal revises the
remainder INR 3,000 crore upwards to INR 5,000 crore.

The issuance, when required, can be in single or multiple tranches of equity, equitylinked
instruments, quasi-equity and/or convertible bonds. The funds may be used for
replacement of debt, funding for capex or other requirements.

Split of Equity Shares:
The Board also proposed a split of authorized, subscribed and paid up equity capital of
the Company subject to the approval of shareholders. The proposed split, in the ratio
of 5:1, is aimed at increasing liquidity of Company’s shares and increasing the number
of investors in the stock through lowering minimum investment amount. With this
split, each equity share of face value INR 10 (only), will be subdivided into five units of
face value INR 2 (only).

Awards and Recognition:
Suzlon received the Euromoney and Ernst & Young Global Renewable Energy
Award for ‘M&A of the Year’ for the successful acquisition of REpower
Systems AG of Germany. Suzlon is the first Indian company to win the prestigious
award. The awards program, dubbed the ‘Green Oscars’, recognize projects,
companies and individuals who have made a significant contribution to the renewable
energy sector.

These awards have created a platform for all key players to debate the future of the
industry and lead the way forward. There are various categories of awards focusing on
financials, commercials and other aspects. Suzlon was also recognized with the ‘IPO of
the Year’ at the 2006 edition of the awards. 


Contact Us

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