Shares of Suzlon Energy continued gaining streak for the seventh straight session on Tuesday, hitting 5% upper circuit limit for the second straight day. The share price of the country’s largest wind turbine manufacturer has risen over 25% in seven trading days, touching fresh 52-week highs, as investors cheered its stellar June quarter earnings report released on July 22, 2024. The company’s net profit zoomed 200% year-on-year (YoY) in Q1 FY25, while its revenue rose 50% during the April-June period of the current fiscal.
On Tuesday, Suzlon Energy shares were locked in 5% upper circuit limit at ₹68.25 on the BSE against the previous closing price of ₹65 apiece. The market capitalisation of the Pune-based company surged to ₹92,990 crore. The counter has risen 284% against its 52-week low of ₹17.73 touched on August 3, 2023.
In the last one year, the multibagger stock has surged 260%, while it rallied 56% in six months and 29% in a month. In the calendar year 2024, the largecap stock has given 77% returns to its shareholders.
For the first quarter ended June 30, 2024, Suzlon Energy reported consolidated net profit of ₹302 crore as compared to ₹101 crore in the corresponding quarter of the previous financial year. The revenue from operations increased to ₹2,016 crore from ₹1,348 crore reported in the year-ago period. On the operating front, EBITDA grew by 86% YoY to ₹370 crore as compared to ₹199 crore in the year ago period.
As per the company’s CFO Himanshu Mody, all businesses showed improved operational performance with tight control on costs, resulting in well-rounded and solid results.
During the quarter under review, the company registered the highest deliveries in 7 years at 274 MW, while it logged the largest ever order book at 3.8 GW since inception (29 years). As of June 30, 2024, net cash position of the company was ₹1,197 crore.
"We are consistently performing in line with our business plan with one of our best Q1 performances in a long time. We continued our strategic focus of strengthening our operational performance across businesses and building the leadership bandwidth. However, our top priority remains timely execution of our robust order book while upholding the highest standards of quality and ESG,” says JP Chalasani, CEO, Suzlon Group.
Earlier this month, India Ratings and Research (Ind-Ra) upgraded and withdrawn Suzlon Energy’s (SEL) bank facilities ratings, citing improvement in EBITDA from the wind turbine generator (WTG) business, the growth in the order book, the improved leverage, and the largely stable cash flow generation from the operations and maintenance services (OMS) business.
The leverage improved due to repayment of debt through the proceeds of qualified institutional placement (QIP), due to which the total debt decreased to ₹110 crore in FY24, from ₹1,904 crore in FY23 and ₹6,390 crore in FY22, the agency said in its report.
Founded in 1995, SEL is one of the leading renewable energy solutions providers in the world with 20.8 GW of wind energy capacity installed across 17 countries. This includes a service portfolio of over 14.8 GW in wind energy assets and 6 GW of installed capacity outside India.
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