The financial picture at Suzlon continues to improve. On May 30, the turbine maker capped a remarkable year in which it reported strong sales and earnings improvements thanks to ramping up volumes and exercising better control over fixed costs.
“We are back to profit, our commissioning megawatts increased by more than 100 percent, and we are confident of maintaining the growth, with strong focus on execution,” reports Tulsi R. Tanti, Suzlon’s chairman and managing director. “The Indian market is expected to increase by 30 percent in fiscal year (FY) 2017, and Suzlon will continue to outpace the industry.”
For the year ended March 31, Suzlon reported an annual sales volume of 1,131 MW and year-over-year growth of 149%. And earnings before interest, taxes, depreciation and amortization increased more than 15%. Revenue for the fiscal year increased by 69%.
Suzlon also reported that the order intake for FY 2016 grew to 1,251 MW – or three times higher than fiscal year 2015.
“We started FY16 with a clear focus on profitability, which we delivered by ramping up volumes and exercising better control over fixed cost,” notes Kirti Vagadia, group chief financial officer. “We have significantly reduced our net working capital, optimized the debt maturity profile and maintained strong liquidity position throughout the year. We continue to demonstrate strong operational performance on every front, including volume growth, commissioning and order intake.”
During the year, Suzlon cut significantly net working capital, optimized the debt maturity profile and maintained strong liquidity. As a result, consolidated net debt at the end of the year was nearly half the amount from the previous year.