Shares of Suzlon Energy hit the lower circuit of 5% after the wind turbine maker reported weak Q4 earnings due to lower revenues and high finance costs.
The company widened consolidated net loss to Rs 834.22 crore for the March quarter against a net loss of Rs 294.64 crore in the quarter ended on March 31, 2019.
Revenue from operations in Q4 fell 54% to Rs 659 crore compared to Rs 1,450 crore posted a year ago.
Following the earnings update, Suzlon Energy share price fell 4.99% with Tuesday's opening bell to Rs 5.33 against the earlier close of Rs 5.61 on BSE.
Suzlon Energy shares trade higher than 20, 50, 100 and 200-day moving averages but lower than 5-day moving averages.
Suzlon Energy stock has lost 9.66% in the last 2 days of fall.
For the full financial year FY19-20, consolidated net loss of the company rose to Rs 2,691.84 crore compared to Rs 1,537.19 crore in 2018-19. Total income from operations for the year ended March 2020 came in at Rs 3,000.42 crore against Rs 5,074.64 crore in 2018-19.
Swapnil Jain, CFO, Suzlon said, "In FY20, our debt restructuring and working capital constraints continued to impede our operations and that is reflected in our performance. Our losses at EBIDTA level are primarily because the WTG (Wind Turbine Generator) business, was almost at a standstill resulting in under-absorption of overheads and certain non-recurring costs."
"Having closed our debt restructuring successfully we have also reduced our fixed costs in FY20 thereby bringing down our break-even levels significantly. Post restructuring we will have an improved balance sheet in FY21, equipping us to ramp up the execution of our order book," he added.