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Suzlon shares rise after winning order from ReNew Wind Power

LiveMint logoLiveMint 05-06-2014 P.R. Sanjai

Mumbai: Wind turbine maker Suzlon Energy Ltd said it has won a 100.8 megawatt (MW) order from ReNew Wind Power Ventures Pvt. Ltd.

A wind turbine approximately costs `6 crore per MW which would make this contract worth about `600 crore.

The project is scheduled for execution at the Bhesada wind site of Jaisalmer district in Rajasthan, the company said in a statement.

As per the agreement, Suzlon Energy will also oversee operations, maintenance and service of the wind site over the contracted period.

Shares of Suzlon Energy rose as much as 4.92%.

In the last four trading sessions, the stock rose by 36% while year-to-date it has almost tripled.

On Saturday, it reported its earnings which showed its Ebitda turned positive after a gap of seven quarters. Its net loss narrowed to `603.45 crore from `1,912.72 crore in the year-ago period, helped by cost reductions and restructuring of operations.

“The company turned Ebitda-positive and Ebit-positive after a gap of seven quarters,” said Kirti Vagadia, group head of finance. Ebitda is short for earnings before interest, tax, depreciation and amortisation—a measure of operating profitability; Ebit stands for earnings before interest and tax.

Income from operations rose 53.23% to `6,645.05 crore in the three months ended March from `4,336.44 crore a year ago. The company swung to an operating profit of `328 crore from an operating loss of `594 crore in the same period.

The debt-laden company has plans to raise about `1,000 crore from sale of non-core assets this fiscal year.

In January 2013, Suzlon Group has won approval for a `9,500-crore debt restructuring from its domestic lenders.

The lenders, a consortium of 19 banks, also agreed to enhance working capital facilities to the group by `1,800 crore and a 10-year deferred repayment plan.

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