Suzlon Energy’s board of directors on Monday approved a proposal to raise Rs 5,000 crore through issue of shares. Funds can be raised either by the way of issuance of equity shares, foreign currency convertible bonds, global depository receipts, or other such equity-linked products, the company said in a release to the stock exchanges.
“This is a standard thing we do every year to give us flexibility of fund raising. There are no immediate plans to raise these funds,” said Robin Banerjee, the chief financial officer of the company, in an earnings concall, on Monday.
The wind turbine company's shares went up by 3.3 per cent on Monday to close at Rs 54 per share. This run-up of shares came in after the company announced an 80 per cent increase in sales for the first quarter, along with a profit of Rs 60 crore as compared to a loss of Rs 912 crore posted in the same quarter, last year.
The company’s results is also on track to achieve its earnings forecast for 2011-12, as it has already covered 17 per cent of the year end revenues and 80 per cent of the projected orderbook at Rs 29,040 crore. The EBIT margins for the quarter too is at 8.1 per cent, the top end of the guidance given by the company last year.
“Compared to a year back, we have made significant progress on all parameters liek EBIDTA and EBIT margins. Our gross margins have also improved. We will now focus on technology and innovation to become more competitive,” said chairman Tulsi Tanti.
