Shares of India's largest wind turbine manufacturer Suzlon Energy gained in the early session on October 29, following its earnings results for the quarter ended September.
Suzlon Energy reported 96% jump in net profit at Rs 201 crore for the quarter ended September 30, 2024 due to record order wins and robust margins. The renewable energy firm said its revenue rose 48% to Rs 2,093 crore in Q2FY25.
The company said its EBITDA rose 31% to Rs 294 crore and order book was at all‐time high 5.1 GW including "India’s largest wind order from NTPC". But EBITDA margin declined to 14.1 per cent from 15.9 per cent in the same quarter last year.
Girish Tanti, Vice Chairman, Suzlon Group, said, “As the renewable energy sector continues to evolve, we're seizing the chance to explore new opportunities that align with our strategic objectives. To help us crystallise the most relevant prospects, we've engaged a leading global management consulting firm to provide expert guidance and insights."
At 9.19 am, Suzlon Energy shares gave up their opening gains to quote Rs 72 on the NSE, higher by 1.6 percent.
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Suzlon Energy posted a slight miss on Q2FY25 execution, at 254 MW, said Nuvama Institutional Equities, compared to its estimate of 275 MW which was impacted by heavy monsoon.
Operating margins were depressed at 14% against estimates of 16%, owing to new costs related to ESOP, SAP implementation, lease of corporate office and other one-offs, leading to a 30% miss on PAT, said Nuvama Institutional Equities.
Robust order inflow at ~1.6 GW led to an all-time high order book of 5.1 GW, lending revenue visibility. "We expect Suzlon Energy to remain a key player in commercial and industrial (two–thirds of order book) and benefits from a duopolistic market in EPC capabilities and maintains an overall ~30%-plus market share," added the brokerage.
Nuvama maintained its 'hold' call on Suzlon Energy, with a price target of Rs 67 per share.
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