The Hindu Business Line : Forex volatility pulls down Suzlon net

Due to foreign exchange volatility the standalone net profit of Suzlon Energy Ltd has dipped to Rs 88 crore for the quarter ended June. In the year-ago quarter, the net profit was Rs 89 crore.

The Chairman and Managing Director of Suzlon, Mr Tulsi Tanti, in a media statement said, “Accounting rules require us to make us provision for foreign exchange translation loss of Rs 146 crore from our FCCB of $500 million. These funds have been deployed to purchase shares of European wind turbine maker REpower. Since these are Euro denominated assets, accounting for any rupee-dollar translation loss on the borrowing is one-sided and entirely notional.”

For the quarter the income from operations has increased by 75 per cent to Rs 1,470 crore from Rs 839 crore in the previous quarter.

As on July 30, the company reported a strong order book position of Rs 16,491 crore, which translates into 3,040 MW of wind turbine capacity. The international orders are of Rs 15,042 crore (2,772 MW) and domestic orders of Rs 1,449 crore (267 MW). The order book does not include orders of Hansen and REpower.

DLF Group order

The company has announced that it has secured from DLF Group one of the largest orders in the country for 71 turbines, each of 1.50 MW, totalling 106.5 MW. With this repeat order the total portfolio of Suzlon turbines to DLF will be 256.50 MW.

On the NSE on Thursday, Suzlon’s shares closed 2 per cent up at Rs 223.10.

More Stories on : Non-conventional Energy | Suzlon Energy Ltd | Forex

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