Suzlon Group Q2 FY22 Results: Rs 12.40 Cr Net Loss

Pune-headquartered renewable energy solutions provider Suzlon Group has announced its second quarter results for the financial year 2021-22 (Q2 FY22). Suzlon reports a net loss of Rs. 12.40 crores.

Other key highlights of Suzlon Group Financial Results Q2 FY22 are as follows:

• Revenue : Rs. 1,346.51 crores
• EBITDA: Rs. 232.71 crores
• EBITDA margin: 17.28 %
• EBIT: Rs.171.45 crores

Suzlon, which has incurred a net loss in several recent quarters, cites the following reason for its poor performance:

• Steep rise in commodity prices, increase in GST on renewable energy devices from 5% to 12% with no pass through and increase in logistics cost by 4-5x, which are likely to have further adverse impact on the margins.
• Challenges in supply chain remain impacting components availability and prices.
• Covid related uncertainties continue as there is resurgence in some parts of the world.

The Group has a cumulative global installation of ~19 GW of wind energy capacity and a large in-house Research and Development (R&D) set-up in Germany, the Netherlands, Denmark and India. The Group is the custodian of over 13 GW of wind energy assets under service in India, making it the 3rd largest Operations and Maintenance Company (over 9000 turbines) in the Indian power sector.

Ashwani Kumar, Chief Executive Officer, Suzlon Group, said, “We are happy to see that operations are smoothening further and the impact of COVID-19 is reducing slowly but surely across the value- chain in India. However, we are staying vigilant since global uncertainty around COVID-19 continues to persist. We have achieved installations of 113 MW in H1 FY22 and are focussed on servicing our existing order book which stands at 1091 MW. The wind energy sector as a whole has been subdued with an addition of only 610 MW in H1 of FY22.”

“The Indian wind energy industry is facing several issues, not allowing the sector to unlock its full potential. Increasing commodity prices and logistics costs along with the enhancement of GST on Goods from 5% to 12% will further result in higher project costs and impact margins making several current projects unviable.”

Himanshu Mody, Chief Financial Officer, Suzlon Group, said, “Q2 of FY22 continued to see rising global demand which disrupted the supply chain, impacting availability and prices across the value chain eroding our margins and volumes. Despite that, we have kept our operations on track with most of the manufacturing facilities functioning in line with our business plan.”

“We have maintained our quarter on quarter (QoQ) performance with a revenue of Rs. 1,346.51 crores and we continue to keep a strict control on costs. Despite the challenges of COVID-19, our Operations and Maintenance Service (OMS) business continued to deliver good turbine performance in Q2.”

The company also informs that the divestment of its 75% stake in the subsidiary Suzlon Generators Limited to Voith Turbo Private Limited or its associates, which was expected to be completed by Q2 of FY22 has been delayed on account of procedural formalities. It is now likely to get completed by Q4 of FY22.