Suzlon Energy shares tank 4% amid QIP buzz, weakness in broader market
Suzlon Energy was recently in news after the wind turbine maker's board approved raising of up to Rs 2,000 crore funds, which represented 10 per cent of the market capitalisation of the BSE500 firm.
- Aug 2, 2023,
- Updated Aug 2, 2023 12:41 PM IST
Shares of Suzlon Energy Ltd tanked 4 per cent in Wednesday's amid a media report that suggested the wind turbine maker was looking to hit the market this month with a qualified institutional placement (QIP). An ET report, quoting people aware of the development, said Suzlon Energy may raise Rs 1,500-1,800 crore by selling shares to institutional investors in a bid to cut debt substantially amid its ongoing efforts to turn around the business.
The stock fell 4.34 per cent to Rs 18.48 on BSE. The broader market too was weak, with the BSE Sensex falling about 1 per cent to sub-66,000 level. The stock has surged 76 per cent year-to-date. Suzlon Energy was recently in news after the wind energy firm said its board approved raising of up to Rs 2,000 crore funds, which represents nearly 10 per cent of the market capitalisation (m-cap) of the BSE500 firm.
The turbine maker, founded by the late Tulsi Tanti, has gone through two rounds of debt restructuring in its lifetime, the latest one in 2020 when its lenders decided to restructure the company's over Rs 13,000 crore debt.
From 2020, through the restructuring, promoter capital infusion and a rights issue, the company has brought down its gross debt to Rs 1,806 crore as of June 30 and a positive consolidated net worth of Rs 1,297 crore, the report suggested.
Suzlon Energy reported a 95.85 per cent year-on-year (YoY) drop in net profit at Rs 100.90 crore for the June quarter compared with Rs 2,392.87 crore in the same quarter last year. The numbers were lower the year-ago profit figure was inflated by exceptional items. Excluding exceptional items, Suzlon Energy had reported a loss of Rs 66 crore in the June quarter of 2022.
It reported a revenue of Rs 1,347.52 crore for the quarter, down 2.18 per cent from Rs 1,377.58 crore in the corresponding quarter last year. Suzlon Energy said its cumulative orders stood at nearly 1.6 GW. Ebitda margin for the quarter stood at 15.4 per cent.
After a sustained effort to reduce debt in FY23 that resulted in a healthier and sustainable balance sheet for the company, Suzlon Energy said its focus in FY24 remains on funding its operations and fulfilling our commitments to customers and other stakeholders. The company said its 28th Annual General Meeting will be held on September 27, Wednesday, through video conferencing or other audio visual means as permitted by the Ministry of Corporate Affairs (MCA) and the Sebi.
The largest renewable energy solutions provider said its Wind Turbine Generator (WTG) segment recorded a revenue of Rs 803.28 crore for the quarter compared with Rs 831.82 crore YoY. Foundry and forging segment saw a drop in revenue to Rs 111.53 crore from Rs 120.44 crore. Its operating & maintenance service segment saw revenue rising to Rs 493.13 crore from Rs 453.81 crore. Following the development, the stock fell 5 per cent to hit its lower circuit limit of Rs 19 on BSE. Despite this, the stock has risen 77.24 per cent in 2023 so far.
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Shares of Suzlon Energy Ltd tanked 4 per cent in Wednesday's amid a media report that suggested the wind turbine maker was looking to hit the market this month with a qualified institutional placement (QIP). An ET report, quoting people aware of the development, said Suzlon Energy may raise Rs 1,500-1,800 crore by selling shares to institutional investors in a bid to cut debt substantially amid its ongoing efforts to turn around the business.
The stock fell 4.34 per cent to Rs 18.48 on BSE. The broader market too was weak, with the BSE Sensex falling about 1 per cent to sub-66,000 level. The stock has surged 76 per cent year-to-date. Suzlon Energy was recently in news after the wind energy firm said its board approved raising of up to Rs 2,000 crore funds, which represents nearly 10 per cent of the market capitalisation (m-cap) of the BSE500 firm.
The turbine maker, founded by the late Tulsi Tanti, has gone through two rounds of debt restructuring in its lifetime, the latest one in 2020 when its lenders decided to restructure the company's over Rs 13,000 crore debt.
From 2020, through the restructuring, promoter capital infusion and a rights issue, the company has brought down its gross debt to Rs 1,806 crore as of June 30 and a positive consolidated net worth of Rs 1,297 crore, the report suggested.
Suzlon Energy reported a 95.85 per cent year-on-year (YoY) drop in net profit at Rs 100.90 crore for the June quarter compared with Rs 2,392.87 crore in the same quarter last year. The numbers were lower the year-ago profit figure was inflated by exceptional items. Excluding exceptional items, Suzlon Energy had reported a loss of Rs 66 crore in the June quarter of 2022.
It reported a revenue of Rs 1,347.52 crore for the quarter, down 2.18 per cent from Rs 1,377.58 crore in the corresponding quarter last year. Suzlon Energy said its cumulative orders stood at nearly 1.6 GW. Ebitda margin for the quarter stood at 15.4 per cent.
After a sustained effort to reduce debt in FY23 that resulted in a healthier and sustainable balance sheet for the company, Suzlon Energy said its focus in FY24 remains on funding its operations and fulfilling our commitments to customers and other stakeholders. The company said its 28th Annual General Meeting will be held on September 27, Wednesday, through video conferencing or other audio visual means as permitted by the Ministry of Corporate Affairs (MCA) and the Sebi.
The largest renewable energy solutions provider said its Wind Turbine Generator (WTG) segment recorded a revenue of Rs 803.28 crore for the quarter compared with Rs 831.82 crore YoY. Foundry and forging segment saw a drop in revenue to Rs 111.53 crore from Rs 120.44 crore. Its operating & maintenance service segment saw revenue rising to Rs 493.13 crore from Rs 453.81 crore. Following the development, the stock fell 5 per cent to hit its lower circuit limit of Rs 19 on BSE. Despite this, the stock has risen 77.24 per cent in 2023 so far.
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