Suzlon Energy jumps 5% after announcing strong Q1 results

Suzlon Energy’s shares jumped nearly 5% on Tuesday after the company announced a 199% year-on-year (YoY) surge in its Q1 net profit to ₹302 crore. During the quarter, the company’s consolidated net revenue grew by 49.55% YoY to ₹2,016 crore.

For the June 30, 2024 quarter, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 85.92% YoY to ₹370 crore. The EBITDA margin for the quarter expanded to 18.4% from 14.8% in the corresponding period last year.

Suzlon Energy stated that its robust financial performance was due to strong commercial fundamentals, favourable wind tariffs, improving margins, and adequate working capital.

In Q1FY25, the company reported its highest-ever deliveries in 7 years at 274 megawatts (MW).

The company’s order book at the end of the first quarter was 3,817 MW, compared to 1,433 MW in the corresponding period last year. The company’s S144 wind turbine generators (WTGs) account for 88% of the mix, while S120 makes up 12% of the model mix.

Suzlon Energy’s projects consist of 34% Central and State bids and 66% from the Captive, C&I, and Retail segments. Of the projects, 33% are on an engineering, procurement, and construction (EPC) model, while 67% are non-EPC.

JP Chalasani, chief executive officer of Suzlon Group, stated that the company’s performance is in line with its business plan, and efforts are being made to solidify operational performance. The company will focus on timely order execution while maintaining quality.

“We continued our strategic focus of strengthening our operational performance across businesses and building the leadership bandwidth. However, our top priority remains timely execution of our robust order book while upholding the highest standards of quality and ESG,” he said.

Shares of the company have risen by nearly 50% since the beginning of the year. The stock has gained over 188% in the past year.