Suzlon Energy Ltd. reported a mixed set of first-quarter earnings, with revenue growing more than 22% year-on-year on strong execution and record deliveries, while net profit declined 5.9% as margins came under pressure.
On a consolidated basis, the renewable energy company posted a net profit of Rs 305 crore, down from Rs 324 crore a year ago. Revenue from operations rose to Rs 3,830 crore from Rs 3,132 crore, while EBITDA was largely flat at Rs 596 crore compared with Rs 599 crore last year. As a result, the EBITDA margin narrowed sharply to 15.6% from 19.1% a year earlier.
Suzlon Energy Q1 Results - Cons, YoY
- Net profit down 5.9% at Rs 305 crore vs Rs 324 crore YoY
- Revenue up 22.3% at Rs 3,830 crore vs Rs 3,132 crore YoY
- EBITDA down 0.5% at Rs 596 crore vs Rs 599 crore YoY
- EBITDA margin at 15.6% vs 19.1% YoY
Despite the decline in profitability, Suzlon highlighted that it recorded its highest-ever first-quarter deliveries of 506 MW, up 14% year-on-year, while project commissioning more than doubled to 269 MW. The company also booked around 1 GW of new orders during the quarter, including large EPC contracts from Tata Power, Sunsure Energy and Waaree, taking its cumulative order book to roughly 6.1 GW.
Management attributed the softer margins to a combination of temporary factors. Chief Financial Officer Rahul Jain said EBITDA and profit margins were impacted by temporary logistics disruptions arising from geopolitical developments, strategic investments, and changes in project scope and business mix, even as execution remained strong.
The company also said it is accelerating its Suzlon 2.0 strategy, which reorganises the business into four verticals—RE Tech, RE DevCo, RE Projects and RE Asset Management—to capture long-term growth opportunities in India's expanding renewable energy market. During the quarter, Suzlon launched its S175 (5 MW) wind turbine platform in India and Europe and secured its first domestic order for the product.
Operationally, Suzlon continued to expand manufacturing capacity by doubling rotor blade production at its Jaisalmer facility, while execution progressed on its 1.2 GW NTPC project in Gujarat.
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