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Suzlon hit upper circuit, Stock trading 52-week high

Suzlon-Group

Suzlon Group, a leading provider of renewable energy solutions and also India's largest renewable energy solutions provider, operates in 17 countries worldwide. With expertise in renewable energy systems, Suzlon offers robust products with high performance, yields, and return on investment. Suzlon Energy Ltd. stock has given a YTD return of more than 100%, with real movement noticed in price since the middle of May.

According to the press releases on the company's page, Suzlon secured two orders in April that warmed up the stock. Later in May, the company secured six healthy orders, which might be the reason for the volume boost. According to industry experts, some other reasons for the revival of momentum in stock could be the discontinuation of reverse auctions, better demand visibility, the waiver of ISTS charges, and improvements in technology resulting in higher productivity.

From May until today, the company has had four significant contracts. On the occasion of World Environment Day in June, Suzlon announced that the company became the first Indian wind energy company to reach 20 GW of worldwide wind energy installations. The installations are spread across 17 countries and six continents, generating enough green electricity to power over 13 million Indian households. These installations prevent approximately 51.35 million tonnes of CO2 emissions annually.

On August 25, the company announced a significant new order acquisition for its 3 MW series of wind turbines from Teq Green Power XI Private Limited. The company will install 64 of its largest wind turbine generators (WTGs) with a hybrid lattice tubular (HLT) tower and a rated capacity of 3.15 MW each for the 201.6 MW wind power project.

The renewable energy solutions provider said on August 9 that its board has decided to raise Rs 2,000 crore through the qualified institutional placement (QIP) route. As the company has a long history of being involved in debt-related problems, the proceeds of the QIP will be utilised towards the repayment of debt and fulfilling the capex requirement. The issue received bids worth more than Rs 4,000 crore for an issue size of Rs 2,000 crore.

The company has grown its total revenue by roughly 80 percent over the years, from a low of Rs. 3365 crore in 2021 to approximately Rs. 5990 crore in March 2023. Profit after tax has also increased by 26 times due to a substantial uptick in the order book, debt restructuring, and a stronger balance sheet. Operating profit margin has risen from 8.84 in 2021 to 9.91 in 2023.

Suzlon Energy reported a 100% decline in consolidated net profit for first quarter, with revenue from operations at Rs. 1,361.68 crore, approx. 20% decrease from the previous quarter. Total expenses also declined by 7%. The company is ramping up operations to service its cumulative orders of 1,582 MW. The wind turbine generator segment recorded revenue of Rs. 803.28 crore for the quarter, while the foundry and forging segment saw a drop in revenue. The operating and maintenance service segment saw revenue rise to Rs. 493.13 crore.

At the time of reporting, the stock was trading at a 52-week high and had hit the upper circuit at Rs. 23.50.

QUARTERLY P&L Jun-23 Mar-23 Dec-22 Sep-22 Jun-22
Total Income 1,361.68 1,699.96 1,464.15 1,442.58 1,383.47
Total Income Growth (%) -19.9 16.11 1.5 4.27 -44.19
Total Expenses 1,198.60 1,290.44 1,300.28 1,330.99 -1,244.02
Total Expenses Growth (%) -7.12 -0.76 -2.31 -206.99 -153.27
EBIT 163.08 409.52 163.87 111.59 2,627.49
EBIT Growth (%) -60.18 149.91 46.85 -95.75 1,731.51
Profit after Tax (PAT) 100.9 279.89 78.36 57.43 2,433.33
PAT Growth (%) -63.95 257.18 36.44 -97.64 -
EBIT Margin (%) 11.98 24.09 11.19 7.74 189.92
Net Profit Margin (%) 7.41 16.46 5.35 3.98 175.89

 

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