Suzlon Group Q1 FY13: Robust US$ 7.2 Bn Order book; Emphasis on Balance Sheet Strengthening

august 20 2012

Suzlon Group, the world’s fifth largest wind turbine maker, recently announced its results for the first quarter of the financial year 2012-13. Speaking after the announcement, Mr Tulsi Tanti, Chairman – Suzlon Group said: “This has been a disappointing first quarter. The macroeconomic environment, policy uncertainties in some markets, along with other external factors such as the depreciating Rupee continue to impact us. Although we met our June FCCB liability in full – as we had committed to do – this absorbed a lot of management time and attention.

“However, our core business fundamentals remain sound – high gross margins, strong and firm Order book, and high turbine availability – and we are embarking on a robust program, Project Transformation, to reduce annual Opex and manpower cost by 20 per cent by the end
of the year. We have also made it a priority to strengthen our balance sheet significantly by deleveraging in India. This will be a defining year for Suzlon Group, even as our sector continues to face a number of challenges. I remain cautiously optimistic that we will end the fiscal in a satisfactory position.”

Speaking on the Group’s performance Mr Kirti Vagadia – CFO, Suzlon Group said: “At the start of this fiscal I set out our key priorities as a company, and I am pleased to report solid progress on a number of them. We have disposed of non-critical assets, such as wind farm assets here in India along with our manufacturing assets in China. We raised US$ 300 million
in new credit facilities and met our June FCCB liability of US$ 360 million in full, as we had committed to do. However, first quarter volumes were significantly constrained by a shortfall in working capital facilities. Additionally, our profitability was impacted by an adverse market mix, a high interest burden and notional forex losses.

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