Suzlon Energy rose 2.51% to Rs 14.31 at 10:07 IST on BSE after the company's wholly owned subsidiary, REpower Systems SE, announced streamlining the organization to be a leaner, more efficient and competitive company.
The company made the announcement after market hours on Friday, 26 April 2013.
Meanwhile, the S&P BSE Sensex was up 74.77 points or 0.39% at 19,361.49.
On BSE, 6 lakh shares were traded in the counter as against average daily volume of 98.73 lakh shares in the past one quarter.
The stock hit a high of Rs 14.49 and a low of Rs 14.15 so far during the day. The stock had hit a record low of Rs 13.20 on 22 March 2013. The stock had hit a 52-week high of Rs 26.90 on 6 February 2013.
The stock had outperformed the market over the past one month till 26 April 2013, rising 3.41% compared with the Sensex's 3.11% gain. The scrip had, however, underperformed the market in past one quarter, sliding 33.84% as against Sensex's 4.06% fall.
The small-cap company has equity capital of Rs 355.47 crore. Face value per share is Rs 2.
Commenting on the streamlining of the organization Andreas Nauen, CEO, Repower Systems SE, said, "The plans I am announcing will allow REpower to better meet today's challenges and prepare for tomorrow's opportunities, particularly in the offshore segment. Whilst the long-term outlook for the sector remains strong, the mid-term outlook is expected to remain uncertain and volatile, and we need to prepare for that. He said that REpower's central functions will be arranged globally. "This is a pre-requisite for being able to react to market conditions more quickly and with greater flexibility. Only in this way will we remain a reliable partner with products tailored to meet our customers' requirements", Nauen said.
He further said that additionally, the company has to realize cost savings of around euro 100 million in the 2013/14 financial year also with effects to following years thereby ensuring a solid economic base. The focus here is on measures for strengthening the efficiency and hence the future viability of Repower. "We will apply leverage wherever we have recognized need for action and will be able to realize savings potential for example in purchasing, production or manufacturing. We have set up a package that will allow REpower to draw on its own strengths to remain a top-quality provider in the wind energy market. We will therefore continue to invest in innovation and hence in our future", Nauen added.
In the course of re-organization, there will be up to 750 job cuts throughout the entire company as one of these measures. "This is a necessary but painful development. We plan to keep compulsory redundancies to a minimum. REpower will work together with the employee representatives in order to do everything to find fair, socially acceptable solutions for those affected by these cuts. The number of enforced redundancies is to be kept as low as possible by means of natural fluctuation, financial incentives for contract termination agreements and expiring fixed-term employment contracts", he added.
REpower Systems SE, a wholly owned subsidiary within the Suzlon group, is one of the world's leading manufacturers of onshore and offshore wind turbines. The company headquartered in Hamburg, Germany is represented by distribution partners, subsidiaries and participations in European markets such as France, Belgium, the UK, Italy, Portugal, Romania, Sweden, Poland and Spain as well as on a global level in the USA, China, Australia and Canada.
Suzlon Energy reported consolidated net loss of Rs 1154.53 crore in Q3 December 2012, higher than net loss of Rs 286.46 crore in Q3 December 2011. Net sales fell 19.5% to Rs 4013.66 crore in Q3 December 2012 over Q3 December 2011.
The Suzlon Group is ranked as the world's fifth largest wind turbine supplier, in terms of cumulative installed capacity and marketshare, at the end of 2012.
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