July 26, 2007
Suzlon continues high revenue growth in Q1
Mumbai: Suzlon Energy Limited (SEL), the worlds fifth largest wind turbine generator (WTG)
company, and the largest WTG manufacturer in India and Asia, reported steady increase in
volumes and revenues growth in the quarter ended June 30, 2007.
The company reported 62% increase in volumes and 82% growth in total consolidated revenues to INR
1,945 crores over corresponding quarter of the previous year. Revenues from overseas sales stood at
INR 1,299 crores, around 67% of total sales during the quarter. EBIDTA stood at INR 140 cr., and the
company reported profit after tax of INR 20 cr., at the consolidated level.
The company reported a continuing strong order book position with a combined order book of 2882 MW (INR
13,500 cr.), as on 23rd July 2007 - 315.20 MW (INR 1,710 cr.) in domestic orders and 2,567 MW
(INR 11,790 cr.) in international orders.
The quarter saw Suzlon securing some of the largest orders in till date, with a 630 MW repeat
order from Edison Mission Group in USA, and a 700 MW order from PPM Energy; the largest ever
for Suzlon and in the history of the US wind energy market.
Commenting on the results, Mr. Tulsi R. Tanti, Chairman and Managing Director of
Suzlon Energy Ltd., said: The quarter has been a challenging stepping-stone towards making
our Vision a reality. We registered strong volumes and revenues growth over Q1 of last year. It
has been an eventful quarter with the successful acquisition REpower Systems AG of Germany.
Capacity expansion at Suzlon and Hansen, vertical integration and R&D development have also
continued on track.
Historically, the first quarter only forms 10-15% share of the annual revenues for Suzlon and
Hansen. Additionally, with the global wind industry oversold, supply chain bottlenecks were a
major challenge for the industry.
Inorganic Growth: REpower-ed
During the quarter, Suzlon successfully completed the bid for REpower, a promising wind turbine
manufacturer based in Germany. Suzlon currently controls 86.5% of total voting rights through
binding agreements with Martifer and Areva, two major shareholders of REpower, as well as our
own direct holding. The bid has valued REpower at Euro 1.34 billion (USD 1.8 billion).
The acquisition will help Suzlon accelerate growth in the European market in the on-shore and
off-shore technology space. And with Suzlons vertically integrated supply chain, be able to
increase volumes at REpower while reducing input costs and improving margins.
The acquisition has created a strong product portfolio to meet the needs of different geographies
and markets across the globe.
The deal was financed through a mix of internal accruals and debt, including a zero coupon FCCB
issue of USD 300 million.
Our quest towards higher levels of corporate social responsibility continues. The main thrust in
the previous quarter was to bring much needed health care and educational facilities to the
underprivileged sections of the society in different parts of rural India.
We organized free medical camps attended by expert doctors from various fields wherein more
than 1,400 locals were benefited. We are also providing essential school supplies to around
8,700 children through 48 schools in these areas.