Suzlon shows signs of recovery – reNews
Indian wind turbine maker Suzlon announced an increase in profitability with an EBITDA of RS196 crore (22 million euros) in the fourth quarter of fiscal 21, a significant improvement over the loss of RS367 crore recorded for the same period in 2020.
This is explained by an increase in revenue of RS1120 crore, compared to RS643 crore in the same period last year.
The increase resulted in a further loss (pre-exceptional items) of RS53 crore, compared to a loss of RS823 crore in Q4 FY20.
However, its subsidiary Suzlon Wind Energy Corporation, USA (SWECO), has filed for voluntary liquidation with the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division, under Chapter 7 of the United States Bankruptcy Code and Federal Rules of Bankruptcy Procedure of the United States on June 29, 2021.
SWECO’s board of directors made this decision following continued financial stress on its operations during the pandemic.
He said he did not expect this decision to have a direct and / or material impact on Suzlon Energy.
Suzlon Group Chairman and CEO Tulsi Tanti said: “It has been an unprecedented and difficult year where economies around the world have been hit by the COVID-19 pandemic.
“Unfortunately, India was and remains one of the worst affected countries.
“Like all industries in the country, India’s wind energy sector has also been affected, mainly due to the uncertainty and operational challenges posed by the pandemic.
“The sector was limited to low volumes with installations of only 1.5 GW, which is almost 30% lower than last year, which represents only 15-18% of capacity utilization. in India.
“Despite the total wind power installations in India amounting to 39.24 GW, or nearly 42% of the total renewable energy installations in the country.
“The massive global push for renewables after COVID-19 and the government’s push on ‘Make in India’ and ‘Aatmanirbhar Bharat’ will help Suzlon to manufacture wind turbines and its components for the sector as a whole in the future and in the future. reduce imports while creating long-term sustainable jobs and energy security.
General manager Ashwani Kumar said: “For Suzlon, this was the first year of restarting our operations after the debt restructuring.
“While our facilities remained weak, our strategic imperatives for the year were to restart our manufacturing facilities, to ensure the continuation of our OMS operations without disruption and to fulfill the obligations of our debt restructuring.
“However, the exponential increase in the prices of raw materials such as steel has had a significant impact on our profitability in India.
“Our service business teams have been exceptionally successful in keeping all of our sites up and running to generate uninterrupted electricity throughout the lockdown period, protecting our customers’ assets and revenues, while providing essential service to the nation. .
“We closed the year with a strong order book of over 817 MW which we aim to serve this year.”