Suzlon to exit debt restructuring by end of FY17

By far a heavy debt company, Suzlon has been successful in reducing its debt by 50% last year.

Jan 09, 2017 09:01 IST India Infoline News Service

Suzlon, renewable energy solutions provider and producer of wind turbines surges 2.4% at Rs 15.06 in intraday trade.

By far a heavy debt company, Suzlon has been successful in reducing its debt by 50% last year. Its total borrowings stood at Rs 11430.76 crore in FY16 from Rs 17810.96 crore FY15.

The company aims at reducing Rs 400-500 crore more of debt in the current fiscal.

Company’s current D/E stands negative at -1.6x with negative reserves and interest coverage at 0.7x. However, company has posted net profit for the first time in FY16 after 6 consecutive net losses since FY10. Moreover, the company also has to exit debt restructuring by March 2017 and is in talks with lead bankers for the same.

Going forward, company will target markets like US and Australia to export its products rather than acquisitions in the foreign markets. The company will also have around 1500 MW projects completed in the next three years.
Recently, in the last week Suzlon bagged 105 MW order from Axis Energy Group to build 50 units of S111 90 metre tubular tower having capacity of 2.1 MW each. 

Stock View:
Suzlon Energy Ltd is currently trading at Rs 15.01, up by Rs 0.3 or 2.04% from its previous closing of Rs 14.71 on the BSE.
The scrip opened at Rs 14.75 and has touched a high and low of Rs 15.13 and Rs 14.67 respectively. So far 22874524(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 7390.89 crore.
The BSE group 'A' stock of face value Rs 2 has touched a 52 week high of Rs 22.1 on 08-Jan-2016 and a 52 week low of Rs 12.47 on 09-Nov-2016. Last one week high and low of the scrip stood at Rs 15.28 and Rs 13.83 respectively.
The promoters holding in the company stood at 20.95 % while Institutions and Non-Institutions held 22.58 % and 56.23 % respectively.
The stock is currently trading above its 200 DMA.

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