Suzlon unit SE Forge exits from debt restructuring plan

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Renewable energy player Suzlon Group said its wholly-owned subsidiary, SE Forge Ltd (SEFL), has exited the Corporate Debt Restructuring plan. "SE Forge Limited (SEFL) has exited the Corporate Debt Restructuring (CDR). Separately, the rating agency CARE has also assigned investment grade ratings, a BBB- rating for its long term bank facilities (including working capital of Rs 392.65 crore) and A3 for its short term bank facilities (Rs 96 crore)," Suzlon Group said in a press release.

SE Forge has achieved turnaround performance in the first nine months with sales revenue growth of more than 90 percent year-on-year. It has improved its operational performance significantly and achieved profitability during the period. The company has a robust order book position and has managed to procure orders from new customers in both wind and non wind sectors.

SE Forge continues to demonstrate strong revival and is moving forward on a growth path, it said. "The exit from the CDR as well as the investment grade rating for SE Forge gives us the required financial flexibility to capture the increased business opportunities at SE Forge and to reduce its interest cost significantly," Suzlon Group Chief Financial Officer Kirti Vagadia said in statement. "The rating and the CDR exit demonstrates improvement in the liquidity profile, scale of operations and profitability of SE Forge. This clearly highlights that SE Forge is on a path of resurgence and demonstrates our restored credibility on the back of significant debt reduction, strong industry outlook and our order-book and pipe-line," Vagadia added. SE Forge was founded in 2006 for castings and forgings to cater to diverse industries like wind energy, power, transmission, oil and gas, aerospace and defense. SE Forge casting division is one of the largest fully integrated foundries of India.