Shares of Suzlon Energy rallied nearly 9 percent in the afternoon on May 31 and was trading around its 52-week-high level after the company announced strong numbers for the quarter ended March 2023.
The wind energy solutions provider posted a consolidated net profit of Rs 320 crore during the quarter on the back of lower expenses. It had incurred a consolidated net loss of Rs 193 crore a year back, according to a regulatory filing. Consolidated net profit for FY23 stood at Rs 2,877 crore as against a net loss of Rs 166 crore in FY22.
Total income from operations fell to Rs 1,699.96 crore in Q4 from Rs 2,478.73 crore a year ago. Total expenses declined to Rs 1,628.39 crore in the March 2023 quarter from Rs 2,511.70 crore a year ago.
At the operating level, EBITDA jumped to Rs 233 crore in the fourth quarter of this fiscal year, compared to Rs 192 crore in the corresponding period of the previous year. The EBITDA margin for the reporting quarter stood at 13.8 percent, against 7.9 percent in the Q4FY22. EBITDA represents earnings before interest, tax, depreciation, and amortisation.
Annually, revenue fell to Rs 5,947 crore in FY23 as against Rs 6,520 crore for FY22. Further, the net debt position of the company improved substantially to Rs 1,180 crore in FY23 from Rs 5,796 crore in the previous fiscal year due to rights issue and refinancing accomplished during FY23.There has also been reduction in net finance costs by 44 percent on YoY basis.
At 1:49pm, the company's stock was trading at Rs 11.60, representing an 8.92 percent increase on the NSE. The stock has given 24.86 percent returns over the last six months and 7.94 percent over the last 12 months. Suzlon Energy stock is trading higher than the five day, 20 day, 50 day, 100 day and 200 day moving averages.
“We reduced our net debt by more than 90 percent over the last three years to address our capital structure issues while responding to the market requirement of a larger wind turbine through our S144 – 3 MW series technology platform. Today we have cumulative orders of 1,542 MW which is the highest since 2019 and includes the order book as on March 31, 2023, of 652 MW plus orders secured subsequently of 890 MW. Out of this 780 MW is for our new 3 MW series,” JP Chalasani, Chief Executive Officer, said.
"Our balance sheet is stronger and leaner as a result of net debt reduction to INR 1,180 crore with the successful rights Issue in FY23 playing a crucial role. Our consolidated FY23 PAT before exceptional items of Rs 167 crore is the highest reported by the company in 6 years and we turned net worth positive after a decade," Chief Financial Officer Himanshu Mody said.
"The year 2023 saw a significant deleveraging by the company. From Rs. 10,000 crores in 2020 to Rs. 1900 crores in 2023, the debt reduced massively. As a result, the finance cost has gone down by more than 70%, from Rs. 1400 crores three years ago to Rs. 400 crores. The stock has been placed in our GARP smallcase basket since it was valued around Rs. 10. The company's shift to a lucrative future is shown by the declaration of core business profitability after several years and a positive net worth after almost a decade." said Aman Soni, Head of Operations at Prudent Equity.
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