Shares of Suzlon Energy Ltd rose as much as 10% on Wednesday after the wind turbine maker reported profit in the fourth quarter of the financial year 2022-23.
The stock gained 10% to ₹11.70 apiece on the National Stock Exchange (NSE), taking the renewable energy solutions provider's market cap to around ₹14,310 crore.
This comes after India's largest wind turbine manufacturer reported a consolidated net profit of ₹320 crore for the quarter ended March 31, 2023, as compared with a loss of ₹205.52 crore over the same period last year.
The company's operating profit or earnings before interest, taxes, depreciation, and amortisation jumped to ₹233 crore in the March quarter compared to ₹192 crore in the corresponding period of the previous fiscal.
EBITDA margin stood at 13.8% in Q4 FY23 as against 7.9% in the Q4 FY22.
Its total income from operations fell to ₹1,699.96 crore in the January-March quarter from ₹2,478.73 crore a year ago.
"FY23 has been a year of demonstration and consolidation for Suzlon. We have addressed our challenges comprehensively over the last three years and FY23 was a year where the results were there for all to see. We reduced our net debt by more than 90% percent over the last three years to address our capital structure issues while responding to the market requirement of a larger wind turbine through our S144 – 3 MW series technology platform," said JP Chalasani, chief executive officer, Suzlon Group.
"Today we have cumulative orders of 1,542 MW which is the highest since 2019 and includes the order book as on March 31, 2023, of 652 MW plus orders secured subsequently of 890 MW," Chalasani added.
Suzlon's total expenses declined to ₹1,628.39 crore in the March quarter from ₹2,511.70 crore a year ago.
"It is heartening that our efforts to strengthen the organization and position it strongly in time to meet increasing market demand have been successful. As evident from these results we have closed FY23 with a strong financial performance and the successful launch of our powerful 3 MW technology platform. Our key strategic initiatives remain on track to fuel long‐term growth of the company," said Girish Tanti, vice chairman, Suzlon Group.
"With a slew of encouraging policy initiatives from the government in 2023, the sector now has much needed visibility, providing momentum for industries to kick‐start their journey to net zero, thereby driving balanced and viable growth of the sector," Tanti added.