Suzlon Energy shares hit 5% upper circuit after Q2 results. Details here

Shares of Suzlon Energy Ltd rose sharply on Thursday after the renewable energy firm announced its second-quarter results for the financial year 2023-24 (Q2 FY24). The company's consolidated net profit came at Rs 102.29 crore, up 78.11 per cent from Rs 57.43 crore in the year-ago period.

Although, revenue from operations slipped 0.92 per cent to Rs 1,417.21 crore in Q2 FY24 from Rs 1,430.38 crore in the corresponding period last year.

On standalone basis, the company posted a net loss of Rs 5.36 crore in Q2 FY24 as against a profit of Rs 4.40 crore in the same period a year ago.

Girish Tanti, Vice Chairman at Suzlon Group, "Our current product portfolio led by the S120 2.1 MW and S144 3.0 MW to 3.15 MW wind turbines continue to see enthusiastic response from our customers demonstrating their faith in Suzlon's technology."

Suzlon said EBITDA (pre‐Fx) came at Rs 224.18 crore in Q2 FY24 and EBITDA margin was at of 15.8 per cent.

JP Chalasani, CEO of Suzlon Group, said, "In the last few months has been the installation of the first prototype of our S144 – 3 MW  turbine at 160mts hub height in Gujarat. This development is aligned to our plans for commercialization of this product series."

The company said its balance sheet became debt free post the successful completion of QIP (Qualified Institutional Placement).

Himanshu Mody, CFO of Suzlon, said, "We were anchored strongly with a net cash of Rs 599 crore by September 2023 which is a significant shift from net debt of Rs 1,180 crore in March 2023. Despite slightly lower YoY (year-on-year) volumes, we have recorded higher EBITDA owing to healthier margins. On the back of a successful QIP conclusion in August 2023, the journey of making our company debt free has been completed, thereby leading to further reduction in quarterly net finance cost by 61% YoY."

The stock jumped 4.98 per cent to settle at its upper price band of Rs 32.89.

Technical view on Suzlon Energy

The technical parameters indicate the counter is in the overbought territory and one should not be carried away with the ongoing momentum, said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One. He also suggested that a series of support is placed around Rs 28-26-odd zone on an immediate basis, followed by sacrosanct support of Rs 24. On the flip side, the next substantial hurdle could be seen around the Rs 35-38 zone in the comparable period, he added.

Expected near-term target on the counter would be around Rs 39, said Aditya Gaggar, Director of Progressive Shares.

Bourses BSE and NSE have put the securities of Suzlon under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

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