India

India

Suzlon confident despite losses widening

INDIA: Suzlon remained bullish on the wind power industry's future in its domestic market despite its losses growing and revenue falling.

India's wind power sector has the potential to grow by 10-12GW a year, Suzlon argues
India's wind power sector has the potential to grow by 10-12GW a year, Suzlon argues

The manufacturer posted a net loss of INR 3.84 billion (US$56.9 million) for its 2018 financial year, down from INR 8.51 billion profit in the previous 12 months.

Its INR 4.69 billion loss for the final quarter of the financial year was also wider than the INR 3.26 billion loss in the third quarter.

Suzlon’s full-year revenue of INR 84.13 billion was down from INR 128.03 billion in the 2017 financial year.

These losses and falls in revenue came despite installing more capacity (626MW) than any other Indian manufacture in the financial year, and adding about 1,956MW to its order book in the same period.

Announcing the company’s financial results, managing director Tulsi Tanti said the Indian market had the potential to mature as it completes its transition to competitive tendering and deliver between 10GW and 12GW per year.

As developers and financial institutions adapt to the new rules and lower prices of the energy auctions in India, manufacturers have reported reduced turbine sales and installation figures.

Suzlon won two projects in Gujarat for a total of 500MW in the SECI 3 tender, and a 285MW project, also in Gujarat, in the fourth SECI auction.

Group CEO JP Chalasani, meanwhile, said that the launch of three new turbines in the 2018 financial year – the S111-140, S120 and S128 – would "strongly boost [Suzlon’s] competitiveness in the current bidding regime". He added: "We will remain cost-competitive by leveraging India as the manufacturing hub and focusing on cost-optimisation, operational excellence, rapid execution and new product development."

The company also stated that is "rightfully positioned to capture wind-solar hybrid volumes over and above wind auction volume", following the ministry of new and renewable energy (MNRE) announcing plans to tender 2.5GW of hybrid projects.

Suzlon completed its solar PV order book last year, commissioning 340MW of sites in Telangana, Rajasthan and Maharashtra.

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