Suzlon December quarter loss narrows to Rs 118 crore on higher revenues

Topics Suzlon | Suzlon Energy | Q3 results

The board in its meeting on Thursday approved the proposal to merge its arm Suzlon Power Infrastructure Ltd (SPIL) into another wholly-owned subsidiary.

Suzlon Energy's consolidated net loss has narrowed to Rs 118.06 crore in the December quarter on the back of higher revenues.

The consolidated net loss of the company was Rs 742.91 crore in the quarter ended on December 31, 2019, the company said in a regulatory filing.

Total income from operations rose to Rs 959.52 crore in the quarter under review, from Rs 672.99 crore in the same period a year ago.

"The theme of the Q3 of FY21 has been ramping up of operations and getting business back on track. This quarter, we were able to increase our pace of turbine supply to service our order book. The improvement in revenues quarter-on-quarter are encouraging and a sign that we are moving in the right direction," Suzlon Group CEO Ashwani Kumar said.

Kumar further said the demand for renewable energy has risen all over the world and the next decade looks extremely promising for the sector. "We are encouraged by the continuous support of the government to renewable energy as reflected in the recent Union Budget," he noted.

Swapnil Jain, CFO, Suzlon Group said "in the Q3 results we maintain a clear improvement in EBITDA over last year. As is evident from the results, our initiatives of cost optimization, organizational realignment and ramping up execution are yielding the desired outcomes.

"Our manufacturing operations have resumed in line with all precautions of the COVID 19 pandemic and our service business continues to do well with wind farms under our service functioning without interruption."

The company, however, said that the Group's ability to generate sufficient cash flows to meet its financial obligations in the foreseeable future could be impacted by the undetermined circumstances arising from the COVID-19 pandemic.

Meanwhile, the board in its meeting on Thursday approved the proposal to merge its arm Suzlon Power Infrastructure Ltd (SPIL) into another wholly-owned subsidiary Suzlon Global Services Ltd (SGSL).

The board has also approved the proposal to transfer and vesting of Project Execution Business and Power Evacuation Business of Suzlon Gujarat Wind Park Ltd (SGWPL), a step down wholly-owned subsidiary of the company, into the SGSL.

Pursuant to this, the remaining business of the SGWPL will continue in the same company, the filing said.

The board has also approved the proposal for liquidation of AE-Rotor Holding B V, the Netherlands, a wholly-owned subsidiary of the company.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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