Suzlon Energy's Q2 earnings show a 45% YoY increase in net profit to Rs 102 crore but revenue barely changed

3 Nov 2023 , 11:26 AM

Manufacturer of wind turbines Suzlon Energy reported 45% year-over-year growth in net earnings to Rs 102 crore in their July-September quarter results, which were released on Thursday. The company’s revenue decreased slightly to Rs 1,417 crore in Q2FY24 from Rs 1,430 crore in the same quarter the previous year. Suzlon Energy’s stats showed strength even in the face of a remarkable Rs 35 crore deficit in the quarter that concluded in September 2023.

EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by a substantial 32.6% to Rs 225 crore from Rs 169.7 crore the year before. Moreover, there was a notable improvement in the EBITDA margin, which increased to 15.9% from 11.9% in the same fiscal quarter previous year.

The quarter has also seen the introduction of policies that will help the industry drive India’s green transition, such as the strategy for establishing offshore wind energy projects, the National Framework for promoting Energy Storage Systems, the Green Hydrogen standards, and specific guidelines for tariff-based competitive bidding. With the goal of accelerating India’s comprehensive energy transition, these policies target several industry pillars.

It is encouraging to see that the nation’s top renewable energy states—Gujarat, Maharashtra, Rajasthan, and Telangana—have continued to go ahead with their own energy transition plans by implementing proactive measures in their renewable energy legislation. Girish Tanti, Vice Chairman of Suzlon Group, stated that Gujarat recently unveiled their long-term renewable energy policy 2023, a comprehensive policy that addresses a number of factors to promote the growth of renewable energy in the state, including captive consumption, C&I investments, as well as MSME and domestic industry participation in renewables.

According to JP Chalasani, CEO of Suzlon Group, the company’s orderbook is a solid 1,613 MW, fairly divided between S120 and S144 turbine orders, providing us with a stable supply pipeline with which to work. ‘As a group, our focus for the rest of FY24 remains to execute our order book, commercialization of the S144 – 3.0 MW to 3.15 MW series, and drive excellence in our services business,’ said the chief executive officer.

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