Suzlon Energy
Following the announcement of its results for the December 2023 quarter during the previous trading session, Suzlon Energy Ltd.’s shares continued to trade around the top of the market on Thursday. The multibagger counter has been taking center stage on Dalal Street since it paid off its debts with a rights issuance and a QIP, becoming a debt-free organization.
From October to December 2023, Suzlon Energy’s quarterly net profit increased by 160% year over year (YoY) to Rs 203.2 crore from a profit of Rs 69.8 crore in the same period the previous year. The wind turbine manufacturer recorded a 7% YoY increase in revenue, coming in at Rs 1,560.5 crore.
Ebitda increased 17.7% during the quarter to Rs 247.6 crore, compared to the same period previous year. From the previous year, the EBITDA margin increased by 140 basis points, reaching 15.9% for the quarter.
Suzlon Energy announced increased revenue, driven primarily by 170 MW of wind turbine generator (WTG) dispatches and consistent O&M revenue. At Rs 250 crore for the quarter, EBITDA represented a 15.9% EBITda margin. Low mold amortization for the S120 2.1 MW WTGs was the main factor in the adjusted PAT of Rs 200 crore, according to JM Financial.” Over FY23–26E, JM predicted that Suzlon will generate revenue, Ebitda, and PAT CAGRs of 42%, 43%, and 176%, respectively. A number of policy measures have been implemented to speed up the addition of wind energy, including state-specific sub-bids for wind, tariff pooling for a uniform RE tariff, RPO trajectory, and a 25-year ISTS charge waiver for RE projects, according to the statement.
Suzlon Energy’s shares continued to rise after the results were announced, rising an additional 5% to Rs 48.31 on Thursday, the 52-week high, with a total market value of almost Rs 65,500 crore. The share had increased 5% during the previous trading session and had finished at Rs 46.01 on Wednesday.
Suzlon Energy’s shares saw a 600% increase after hitting a 52-week low of Rs 6.96 in March 2023. Over the past year, the stock has increased by almost 425 percent, and in the last six months, the counter has increased by as much as 150 percent. Over the past month, it has increased by 25%.
2,290 MW of orders have been placed with Suzlon in 9MFY24. 867 MW further orders were received in January 2024, bringing the total amount of orders received up to that point to a solid 3,157 MW with a diverse mix. On January 24, ABC Cleantech (ACPL) awarded the business the largest order for the delivery of WTGs for a 642 MW wind power project in India, JM continued.
The management views Suzlon’s technical and execution capability as demonstrated by the present order book. There are currently 15 GW of renewable projects out for bid, consisting of 2.6 GW of pure wind and 9 GW of firm and dispatchable renewable energy. This indicates a healthy pipeline of future prospects.
The brokerage added that despite a stronger than anticipated order book, improved financial health, a favorable policy environment, and a very healthy bidding pipeline, it has maintained estimates for FY25E and FY26E given the challenges of land acquisition in scaling up project execution. It also maintained a “buy” rating on the stock with a target price of Rs 54.
Your article helped me a lot, is there any more related content? Thanks!