Wind turbine maker Suzlon Energy has a reported a consolidated loss of Rs 808 crore for second quarter FY 2013 amidst challenges of debt restructuring and weak macro economic outlook. The Pune-based company had posted a profit of Rs 48 crore in the same period last year.
Revenue increased 11% to Rs 5,702 crore from Rs 5,131 crore in same period last year but raw material costs and interest costs rose sharply resulting in a loss. On the operating level too the company recorded a loss of Rs 300 crore as against a profit of Rs 311 crore last September.
Last month, Suzlon had defaulted on redemption of foreign currency convertible bonds worth $220 million after bond holders rejected request for extension. The company has begun discussions with Indian lenders to restructure its Rs 14,000 crore debt seeking two year moratorium on certain debt payments and additional working capital. The company has also suspended its revenue and margin guidance for the current year.
Tulsi Tanti, Suzlon Group's chairman said: “The first half of the financial year has been disappointing for the Suzlon Group. Our performance was affected by macro-economic headwinds and policy uncertainties in some key markets; as well as by our internal challenges around liability management, and sub-optimal capital allocation to business operations. Despite this, key metrics point in the right direction: we have continued to grow revenues year-on-year; our product offerings are highly competitive in the marketplace; our firm orderbook stands at an extremely robust USD 6.84 billion; and, REpower continues to maintain a solid growth trajectory. ''
The company signed new firm orders of 1,070 MW signed during Q2 FY13.
Kirti Vagadia, Chief Financial Officer – Suzlon Group said: “Allocation of cash towards addressing financial liabilities, combined with working capital constraints, acted as a significant limiter on our performance in first half of financial year. Addressing this is now the central focus of our change agenda. We have launched several key initiatives – including Project Transformation – to bring down fixed costs, reduce working capital intensity, and continue our sale of non-critical assets as we right-size the business
