Suzlon:
9.8% global wind market share (6.4% Suzlon + 3.4% Repower).
stock:
hi 464 rupees in January 2008
lo 35 March 2009
now 48
Suzlon has had negative cash flow every year since 2004
latest quarter:
Suzlon Energy Ltd., India’s biggest maker of wind turbines, reported its fourth-straight quarterly loss, missing analyst estimates as a weaker euro devalued its overseas assets...A weaker euro devalued Suzlon Energy’s overseas assets by 1.72 billion rupees, Chief Financial Officer Robin Banerjee said today in a telephone interview. “If you add that back, the loss is very marginal,” Banerjee said. “We’re almost there to the black number that we’re looking for.” He declined to forecast whether the Ahmedabad-based company could return to profit by next quarter.
Group orderbook rises to record US$ 7.3 bn; increase of 35 per cent. Group revenues of Rs. 4,433 cr. (US$ 968 mn). EBITDA of Rs. 182 cr. (US$ 40 mn); Normalized EBITDA of Rs. 354 cr. (US$ 77 mn.) EBIT of Rs. 40 cr. (US$ 9 mn); Normalized EBIT of Rs. 212 cr. (US$ 46 mn). Gross margins maintained at 32 per cent. Net debt-to-equity ratio of 1.5x.
Market outlook: The global market for wind energy is improving. There has been a steady increase in financing for new build wind farm projects, quarter on quarter, going from US$ 18 billion in Q1 CY10 to US$ 26 billion in Q3 CY10. Additionally, there is significantly higher visibility of volumes emerging, with a global pipeline of 140 GW to 150 GW of wind turbines installations over the next three years.
Suzlon, which is saddled with almost 215 billion rupees ($4.7 billion) in debt, according to Bloomberg data, is seeking to ramp up orders before a two-year holiday on principal repayments ends (March 2012). “If orders flow in like this, there will be less pressure on Suzlon to sell out,” said Gaurav Oza, a Mumbai-based analyst with A.K. Stockmart Pvt... Suzlon denied a report this month by television channel NDTV Profit that Chairman Tulsi Tanti and family members were seeking to sell their stake to Spain’s Gamesa.
suzlon.com
evwind.es
noir.bloomberg.com
noir.bloomberg.com
financialexpress.com
my comment: Suzlon is India's national champion, and therefore likely to survive, if only because the government won't let it fail. Other than that, it has little to recommend it as an investment. High debt, no profits, Euro risk. Doesn't report to U.S. GAAP standards. GE, SI, and Vestas have better technology. |
