Suzlon Energy shares tank ahead of Q4 results; here's earnings preview

Shares of Suzlon Energy Ltd were trading 2 per cent lower in Friday's trade ahead of the renewable energy solutions provider's March quarter results. JM Financial expects Suzlon Energy to report 16 per cent YoY jump in profit at Rs 324.20 crore compared with Rs 279.90 crore in the same quarter last year. Profit is seen rising 60 per cent sequentially due to significant reduction in debt. Revenue for the quarter is seen surging 63 per cent YoY to Rs 2,762.10 crore compared with Rs 1,694.10 crore YY, thanks to higher wind power capacity addition. Ebitda margin is seen at 13 per cent, down 46 basis points over 14 per cent YoY.

The stock fell 2.07 per cent to hit a low of Rs 47.25 on BSE.

With a 32 per cent market share in India’s wind turbines, Suzlon Energy turned net-cash in the first nine months of FY24. This was the the first time since FY06 when  the company turn net-cash. "It has battled high debt from incessant acquisitions, the 2008 global financial crisis and anemic domestic markets due to policy changes, which crimped its prospects," Anand Rathi said.

This brokerage sees Suzlon Energy's adjusted profit at Rs 262.20 crore. Sales are seen rising 52.4 per cent YoY to Rs 2,581.70 crore. Ebitda margin is seen at 12.6 per cent against 15.9 per cent in December and 13.7 per cent in the same quarter last year.

(More to come)