Suzlon boosts revenue in first quarter

INDIA: Suzlon has taken a further step on the road to recovery, posting results for the first quarter of the financial year showing improved revenues and shrinking losses.

Suzlon expects improvements in its Indian home market
Suzlon expects improvements in its Indian home market

Its net loss was down to INR 7.5 billion ($125 million) in the three months from April, compared with INR 10.6 billion in the same period last year. Revenue was up to INR 46.7 billion from INR 39 billion, while costs increased slightly.

However, a more worrying indication came in the form of a reduced order book. This was down to 4.9GW at the end of the period, from 5.36GW a year before.

But Suzlon said that it believes it is well poised to improve its position, particularly in Indian home market, where a number of recent policy changes have made the regulatory environment more conducive to stronger growth for the wind industry.

The company valued its order book at $7 billion, with $ 1.1 billion in the emerging markets of India, Brazil and Uruguay. Another $4.7 billion is expected from "developed onshore markets", while the remaining $1.2 billion should come from offshore projects being installed by its German subsidiary, Senvion (formerly Repower).

During the quarter, Suzlon staved off immediate crisis when it agreed the terms of a restructuring of its bond debt, which will see the Indian manufacturer issue $547 million in new bonds.

However, in order to win over bondholders, the company had to issue bonds with a value well over that of the defaulted bonds, which were worth $285.8 million.

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