Suzlon Energy, one of the largest wind turbine suppliers, reported a consolidated net loss of Rs 1,154.5 crore in the third quarter of FY13, an increase of 4-fold compared to a loss of Rs 286.5 crore in a year ago period due to lower total income.
Suzlon Energy , one of the largest wind turbine suppliers, reported a consolidated net loss of Rs 1,154.5 crore in the third quarter of FY13, an increase of 4-fold compared to a loss of Rs 286.5 crore in a year ago period due to lower total income.
Consolidated total income dropped 19.6 percent to Rs 4,047.7 crore from Rs 5,033.5 crore during the same period.
Numbers were quite below analysts' expectations. Analysts on an average had expected net loss of Rs 307 crore and total income of Rs 5,577 crore for the quarter.
Suzlon posted a consolidated forex loss at Rs 47 crore during the quarter as against loss of Rs 34.3 crore in the corresponding quarter of last fiscal.
Outstanding order book of the company stood at Rs 41,546 crore (approximately 5.7 GW) as on February 13, 2013. The order intake for the October-December quarter stood at Rs 8,097 crore (1,104 MW).
The Suzlon group secured firm order wins of approximately 2,631 MW year-to-date FY13 despite a very challenging operational environment.
In January, the company's domestic lenders, a consortium of 19 banks, approved the corporate debt restructuring package of around Rs 9,500 crore. "This not only underscores the long-term viability of our business, but is a catalyst towards normalising our operations," Chairman Tulsi Tanti said.
He said the year 2012 was a challenging year for the wind energy sector at large; macro-economic conditions and policy challenges affected markets worldwide. Tanti expects that near-term challenges will continue to impact the industry over 2013.
The company decided to close its rotor blade and control panel manufacturing units at the Puducherry (Pondicherry) manufacturing facility.
"The decision follows on account of the challenges faced in industrial relations at the manufacturing facility coupled with logistical issues faced by the facility in handling multi-MW wind turbine components of increasing size and the current financial position of the company," Suzlon reasoned.
"This, however, does not include the Nacelle unit at the same facility, which could see utilisation as a service centre," it added.
This would also help the company in reduction of operational expenses and working capital intensity as well as rationalise capacity in the company's supply chain.
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