A focus on more remunerative markets and introduction of newer products with higher margins have helped wind energy major Suzlon trim its losses in the second quarter of the current fiscal in comparison to the same quarter of last year. 

The standalone entity Suzlon Energy has reported a loss of Rs 528 crore in Q2 ’15 against Rs 734 crore in Q2 ’14 representing a drop of around 28 per cent in loss year on year. The Q2 ’15 loss includes Rs 172 crore written off against losses of one of its subsidiaries that appears in the financial statement as an exceptional item.

 

Income in the quarter under review rose by 25 per cent to stand at Rs 754 crore(Rs 599 crore).

On a consolidated basis, the group posted a loss of Rs 634 crore in Q2 compared to a loss of Rs 778 crore in last year.

The Group’s total income also rose 11.8 per cent to stand at Rs 5,389 crore against Rs 4,809 crore.

Suzlon has posted its 3rd consecutive quarter of positive EBIDTA at consolidated level moving from a loss of Rs 31 crore to a profit of Rs 114 crore. The Company has also achieved installation of 25,000 MW globally, including 9000 MW in India, Kirti Vagadia, Director Group Finance said.

“In H1 2015, gross margins have improved by 520 basis points and now stand at 32.5 per cent against 27.3 per cent in the first six months of FY 13,” he added.

The improved results were on account of the change in the products mix and launch of new generation products with better margins, change in the market mix and better execution of orders, Vagadia said.

At the end of the trading day the scrip closed at Rs 13.45 up 1.97 per cent on the BSE

Related Topics