Suzlon Energy Shares Post Biggest Intraday Fall in Three Years

Suzlon Energy shares crashed 19 per cent today to hit a fresh 52-week low. Wednesday's fall is the biggest for Suzlon since February 28, 2013, when shares in the wind turbine maker ended 34 per cent lower at Rs 16.

Suzlon shares were headed for their third straight fall following the company's quarterly earnings announcement on Friday. The stock has shed 32 per cent over the three-day period.

Suzlon posted a net loss of Rs 113 crore in the December quarter, while its revenue plunged 62 per cent to Rs 1,891 crore. Suzlon missed revenue estimates by over Rs 150 crore, according to analysts polled by Thomson Reuters.

Revenues of Suzlon's wind turbine segment, which contributes nearly 95 per cent to overall sales, fell 63 per cent in the December quarter. Though Suzlon's interest outflow came down to Rs 266 crore in the December quarter from Rs 449 crore in the year-ago period, higher finance costs continued to pressure its bottom line.

Suzlon shares had witnessed buying interest after billionaire Dilip Shanghvi-controlled entities last year announced an agreement with the company to buy 23 per cent stake in the wind turbine maker for Rs 1,800 crore.

A sharp selloff in broader markets and power stocks in particular, coupled with weak earnings have triggered large scale selling, traders say. 

"Too many people tagged on to Dilip Shanghvi of Sun Pharma... However remember for him its just 2 years dividend from Sun," tweeted fund manager Sandip Sabharwal.

Suzlon shares closed 11.8 per cent lower at Rs 14.95 apiece compared to 1.29 per cent fall in the broader Sensex.

Suzlon Energy shares crashed 19 per cent today to hit a fresh 52-week low. Wednesday's fall is the biggest for Suzlon since February 28, 2013, when shares in the wind turbine maker ended 34 per cent lower at Rs 16.

Suzlon shares were headed for their third straight fall following the company's quarterly earnings announcement on Friday. The stock has shed 32 per cent over the three-day period.

Suzlon posted a net loss of Rs 113 crore in the December quarter, while its revenue plunged 62 per cent to Rs 1,891 crore. Suzlon missed revenue estimates by over Rs 150 crore, according to analysts polled by Thomson Reuters.

Revenues of Suzlon's wind turbine segment, which contributes nearly 95 per cent to overall sales, fell 63 per cent in the December quarter. Though Suzlon's interest outflow came down to Rs 266 crore in the December quarter from Rs 449 crore in the year-ago period, higher finance costs continued to pressure its bottom line.

Suzlon shares had witnessed buying interest after billionaire Dilip Shanghvi-controlled entities last year announced an agreement with the company to buy 23 per cent stake in the wind turbine maker for Rs 1,800 crore.

A sharp selloff in broader markets and power stocks in particular, coupled with weak earnings have triggered large scale selling, traders say. 

"Too many people tagged on to Dilip Shanghvi of Sun Pharma... However remember for him its just 2 years dividend from Sun," tweeted fund manager Sandip Sabharwal.

Suzlon shares closed 11.8 per cent lower at Rs 14.95 apiece compared to 1.29 per cent fall in the broader Sensex.