Wind turbine supplier Suzlon Energy has lowered its revenue and margin guidance for the current year, amidst concerns over the proposed redemption of Rs 3,000 crore worth bonds. The company reported a 13 percent rise in net loss in the third quarter. Net loss stood at Rs 286.5 crore, compared with Rs 253 crore in the year-ago period.
At the beginning of 2011-12, Suzlon had given a revenue guidance of Rs 24,000-26,000 crore and an operating margin guidance of seven-eight per cent. However, on Saturday, the company lowered its revenue estimate to Rs 21,000-22,000 crore and operating margin guidance to five-six per cent due to lower volumes in the third quarter.
“Our performance over the past 12 months (Jan-Dec 2011) has shown consistent improvement on all parameters. Our revenue of Rs 21,660 crore is a year-on-year growth of over 30 per cent; we booked orders of over Rs 30,000 crore, and achieved an earnings before interest and taxes margin of seven per cent,'' chairman Tulsi Tanti said in a statement. He added the third quarter volumes were lower due to the extended monsoon, grid infrastructure delays in China and delays in securing working capital.
Suzlon would have to raise about Rs 3,000 crore in the next few months, as its foreign currency convertible bonds are due for redemption. The company auditors, in their observations, remarked the appropriateness of going concern basis was dependant on the company’s ability to raise funds to meet these obligations.
Chief financial officer Robin Banerjee said the company was confident of meeting its obligations in full. "Auditors are of course required to make certain statements. However, we are actively pursuing various options.”
