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Suzlon Energy Ltd., a leading renewable energy company in India, has reported its highest ever consolidated profit and Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) before exceptional items in seven years during financial year 2024.
For the March quarter, Suzlon reported a revenue growth of 30% from last year to ₹2,196 crore. This growth is attributed to increased demand for renewable energy solutions and the company's focus on expanding its customer base.
However, the company's net profit for the period fell by 8.6% from last year to ₹254 crore. This decline is primarily due to an exceptional item of ₹27 crore, which resulted from the de-recognition of certain assets.
Despite the decline in net profit, Suzlon's EBITDA for the March quarter increased by 54% year-on-year to ₹357.2 crore, while margin expanded by 260 basis points to 16.3% from 13.7% last year. This improvement in profitability is driven by cost optimisation initiatives and operational efficiencies.
In its earnings presentation, Suzlon mentioned that it has closed financial year 2024 with its largest ever order book at 3.3 GW. This strong order book provides visibility for future revenue growth and positions the company well in the growing renewable energy market.
Suzlon Group Vice Chairman Girish Tanti expressed optimism about the company's future, stating that they have added many Indian conglomerates to their customer portfolio with long-term relationships and repeat orders. He believes that Suzlon has a solid foundation to lead the sector in years to come.
During the year, Suzlon commissioned projects worth 882 MW, which is a 78% growth from last year. This demonstrates the company's execution capabilities and its commitment to delivering clean energy solutions.
Suzlon Group CFO Himanshu Mody emphasised the company's focus on cost optimisation and timely execution of its order book. He believes that Suzlon is moving in the right direction and is well-positioned for continued growth in the future.
Despite the positive financial performance, Suzlon's shares ended in a lower circuit of 5% at ₹45.9. This decline may be attributed to overall market sentiment or profit-taking by investors.
Overall, Suzlon's Q4 results indicate strong growth in revenue and profitability, supported by a robust order book and a focus on cost optimisation. The company is well-positioned to benefit from the growing demand for renewable energy solutions and has a solid foundation for future success.
Source: Suzlon Q4 Results: Stock ends 5% lower despite 30% revenue growth, largest ever order book