After 6 yrs, Suzlon Energy turned in profit, stock doubled in a month

If an investor had bought shares of the company worth ₹1 lakh a month ago, his investment would have doubled to ₹2 lakh now

Dilip Shanghvi Suzlon

Mumbai: The share prices of Suzlon Energy, an Indian multinational wind turbine manufacturer, have almost doubled in the last one month. The rally in Suzlon’s shares is being attributed to its net worth that has turned positive after a decade. The company has turned profitable after almost six years and has doubled its orders in the last two months.

Suzlon share price rises to ₹15.75

A month ago, to be precise on May 15, Suzlon Energy‘s share was ₹ 8.2. However, on June 12, its share had increased to ₹ 15.75, which is also its 52 week high. The company’s stock closed at ₹14.50 with a slight gain on June 15.

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Investments doubled in one month

If an investor had bought shares of the company worth ₹1 lakh a month ago, his investment would have doubled to ₹2 lakh now. Suzlon’s global chief executive officer JP Chalasani said, “Favourable market conditions and strong balance sheet are going to help us grow in the coming years.”

Suzlon’s order book grows to 1,542 MW

Suzlon’s order book as on March 31, 2023 was 652 megawatts (MW), which has now increased to 1,542 MW. The company’s shares have rallied in recent weeks on the back of some big orders. The firm has received orders for 890 MW so far in the new financial year. About 780 MW (51%) of the order book is now for its new 3 MW (S144) Wind Turbine Generator (WTG) series.

The company achieved worldwide milestone

In India, Suzlon now has a manufacturing capacity of 3.1 GW for its 2.1 MW WTGs. When the company starts manufacturing 3 plus MW WTGs, its capacity will be increased to 4500 MW in a phased manner. This week the company also achieved a milestone of 20 gigawatts (GW) of installed wind turbine capacity worldwide. Suzlon has 33% of the installed wind capacity across the country. It has added 59 MW in FY21 and 204 MW in FY22. The company is also likely to add installed wind capacity of 808 MW in FY23 and 664 MW in FY24.

Suzlon’s revenue stood at ₹5,947 crore in FY23

Suzlon’s revenue has grown to ₹ 5,947 crore in FY23 as compared to ₹2,933 crore in FY20 and ₹3,295 crore in FY21. The company’s profit after tax (PAT) stood at ₹167 crore in FY23. After the last six years, the company’s PAT has come in positive for the first time.

The company’s net-worth turned positive in FY23

By the end of FY23, the net-worth of the company has grown to ₹1,099 crore. For the first time after a decade, the company’s net-worth has become in positive. The company’s net debt is expected to come down to ₹1,180 crore in FY2023 from ₹13,003 crore in FY20.

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The company converted 16 lenders into just 2 new lenders in May 2022 through a rights issue and refinancing. Another positive for Suzlon is that the company had the potential to reduce net finance cost by 44% in FY23. Now the consolidated net finance cost has come down from ₹1,340 crore in FY20 to ₹401 crore in FY23.

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