Suzlon Energy Q1 loss widens to Rs 1,059 cr, sales fall 19%

Suzlon Energy, the world’s fifth largest wind turbine maker, continued to report a dismal performance with the first quarter consolidated net loss widening to Rs 1,059 crore from Rs 849 crore on yearly basis (but declined sequentially from Rs 1,913 crore), dented by forex loss and exceptional cost.

Consolidated income from operations dropped 19 percent year-on-year (down 10 percent sequentially) to Rs 3,851.45 crore during April-June quarter.

The company said the financial performance was impacted by non-routine costs, including notional foreign exchange losses totalling approximately Rs 155 crore (USD 26 million) due to the extraordinary depreciation of the rupee against the US dollar and the euro."

The company also booked exceptional costs for its restructuring program of Rs 136 crore (USD 23 million), according to its filing.

Consolidated other income dropped significantly to Rs 11 crore from Rs 77 crore year-on-year.

The company has reduced the operational expenses during the quarter to bring business efficiency. "We have achieved a 31 percent reduction in our operating expenses as compared to the last quarter, we continue to bring down the working capital-to-sales ratio to 11.4 percent at the end of Q1, from 13.6 percent in the last quarter. Our non-critical asset divestment program continues to be on track," says Kirti Vagadia, Group Head of Finance.

The consolidated group order book stood at 5.36 GW, approximately Rs 41,947 crore (USD 7.1 billion) in value, with an intake of 356 MW over Q1 FY14.