Suzlon Energy Ltd posts consolidated net loss of Rs627.38cr in Q2FY19 vs. net profit of Rs70.68cr in Q2FY18 : Misses Estimates

The company’s consolidated revenue stood at Rs1,204.86cr, up 4.11% yoy but down 5.69% qoq.

Nov 14, 2018 02:11 IST India Infoline Research Team

Suzlon Energy Ltd Q2FY19

Consolidated Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 1,204.86 4.1
EBITDA 115.03 7.5
EBITDA Margin (%) 9.6 31
Net Loss (adjusted) 627.38 0
***EBITDA margin change is bps
Suzlon Energy Limited posted disappointing set of numbers for the September quarter of financial year 2019. Consolidated revenues from operations fell by 4.1% yoy to Rs1,204.9cr in Q2FY19 vs. Rs1,157.3cr in Q2FY18, 17.8% below consensus estimates. Operating profit (adjusted for forex losses) rose 7.5% yoy to Rs115cr in Q2FY19 vs. Rs107cr for the same quarter last year, missing the street estimate by 14.8%. EBITDA margin rose 31bps yoy to 9.5% for the quarter under review. Suzlon reported consolidated net loss of Rs627.4cr in Q2FY19 as against consolidated net profit of Rs70.7cr in Q2FY18. The street was expecting the company to report a net loss of Rs254cr for the quarter.
  • Bottom-line was severely affected by forex losses which jumped more than three times to Rs347.5cr (from Rs99cr in Q2FY18).
  • Other income too declined by 21.7% yoy to Rs17cr in Q2FY19 vs. Rs21.8cr in Q2FY18.
  • Revenues from Wind Turbine Generator business increased by 20.7% yoy to Rs690cr vs. Rs571.6cr in Q2FY18. The segment contributed 54.9% to the top-line for the quarter.
  • Foundry & Forging segment, which contributed 6.6% to the top-line during the quarter, witnessed a growth of 14.2% yoy to Rs83.5cr.
  • Revenues from Operations and Maintenance Services segment grew by 8.6% yoy to Rs467.8cr for the current quarter. The segment contributed 37.2% to the consolidated revenues of the company.
  • Consolidated borrowings as on September 30, 2018 was Rs10,312.8cr, down from Rs11,605.2cr at the close of March 31, 2018.
  • Cash and Cash Equivalent declined from Rs581.1cr on March 31, 2018 to Rs120cr at the close of H1FY19.

Technical View:

Suzlon Energy Ltd is currently trading at Rs. 5.81, down by 0.21 points or 3.49% from its previous closing of Rs. 6.02 on the BSE.
The scrip opened at Rs. 6 and has touched a high and low of Rs. 6.05 and Rs. 5.78 respectively. So far 2,82,14,877 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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