Suzlon Energy Q2 Results: Tax write-back aids net profit, order book at record high of 6.2 GW

Shares of Suzlon Energy Ltd. recovered from the lows of the day in response to its quarterly results that were reported on Tuesday, November 4.

The company's net profit surged to ₹1,278 crore from ₹200 crore during the same quarter last year. The profit was aided by a tax write-back of ₹718 crore. Even after the adjustment, the profit would still be up by more than 100% on a year-on-year basis.

Revenue for the quarter increased by 84% year-on-year to ₹3,870 crore, from ₹2,103 crore, while Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased to ₹720 crore, which is a 2.5x jump from the ₹293.4 crore it reported during the same quarter last year.

EBITDA margin for the quarter expanded by 460 basis points on a year-on-year basis to 18.6% from 14%.

The company's revenue in the core wind turbine generator segment increased to ₹3,241 crore from ₹1,507 crore last year.

Revenue from the Foundry & Forgings business increased to ₹121 crore from ₹83 crore

Operations and Maintenance business revenue was largely flat from last year at ₹575 crore from ₹565 crore last year.

For the quarter, Suzlon Energy's deliveries stood at 565 MW, which was the highest ever for the company. Its order book has now crossed 6 GW, now at 6.2 GW, with the addition of another 2 GW in the first half of the current financial year.

At the end of the September quarter, Suzlon Energy's net cash position stood at ₹1,480 crore.

"Our strategy of decoupling project development and project execution will drive execution volumes significantly. With long-term visibility of 400 GW wind capacity by 2047, I’m confident we’ll continue leading the market," Suzlon Group Vice Chairman Girish Tanti said.

Suzlon Group CEO JP Chalasani said that as the Indian wind market gears up for installations of 6 GW this financial year and 8 GW in the next, Suzlon will continue to drive sustainable, profitable growth.

Shares of Suzlon Energy are currently trading 2.4% higher after the announcement at ₹60.65.