Shares of Suzlon Energy fell more than 9 percent in the morning trade on May 26 after the company reported weak earnings for the quarter ended March on May 25.
The power sector company’s consolidated net loss for the reported quarter widened to Rs 204.9 crore from Rs 56.7 crore in the year-ago period, reflecting the adverse impact of a sharp jump in raw material costs.
During the quarter, total expenses rose to Rs 2,511 crore from Rs 1,198.7 crore in the year-ago period as fuel costs soared. Expenses on raw material more than doubled year-on-year to Rs 1,526 crore from Rs 730 crore.
“FY22 was marked by supply-chain disruptions and its wide-ranging impact on various sectors, including the wind energy. The exponential rise of commodity prices and logistics costs added to the sector’s woes,” said Ashwani Kumar, chief executive officer at Suzlon Group in a post-earnings statement.
The high costs impacted the company’s bottomline, with net losses widening sharply on year. Costs are expected to remain higher for the coming quarters as global crude oil prices remain above $110 a barrel.
Shares of Suzlon Energy have fallen 23 percent in 2022 but have given 23 percent returns in the past year.
At 11.03 am, shares of Suzlon Energy were down nearly 10 percent at Rs 7.85 on the National Stock Exchange.
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