Suzlon Energy shares fall 3% as Q1 loss widens
The consolidated net loss of the company was Rs 397.87 crore in the quarter ended on June 30, 2020 against a net loss of Rs 335.11 crore in the year-ago period.
August 31, 2020 / 12:32 PM IST
The share price of Suzlon Energy fell more than 3 percent in intraday trade on BSE on August 31 after the company reported widening of its consolidated net loss to Rs 398 crore in the April-June quarter of the financial year 2021.
The company reported a consolidated net loss of Rs 335.11 crore in the corresponding quarter a year ago.
"The COVID-19 pandemic and the implementation of debt restructuring, which was completed on June 30, 2020, impacted our WTG business in Q1," company COO V Tanti said.
The company's total consolidated income declined to Rs 528.22 crore in Q1FY21 from Rs 851.09 crore in the same period last year.
EBITDA came at Rs 91 crore in Q1FY21 and EBITDA margin at 17.7 percent in Q1FY21.
"We have started securing new orders in Q1 and have a healthy order book of 867 MW. Despite the challenges of the COVID-19 lockdown, our Operations and Maintenance Service (OMS) business continues to deliver good performance and SEForge our forging and foundry business has also performed well," Tanti added.
As the debt resolution plan was implemented at the end of Q1FY21, the impact of the reduction in interest cost would be seen in the coming quarters, CFO Swapnil Jain said.
"The company is now strongly positioned to resume the WTG business and execute our order book. We have also reorganised the business to suit the new market paradigm, which has helped in a significant reduction of our break-even levels making us even more competitive,” Jain said.