Suzlon Energy Share Price

Suzlon Energy Ltd

Introduction

Suzlon Energy Ltd (SEL) is a leading renewable energy solutions provider in India, with a significant presence in 17 countries across six continents. Established on April 10, 1995, the company specialises in the design, development, manufacturing, and supply of wind turbine generators (WTGs). Suzlon is recognised for its comprehensive services across the wind energy value chain, including project design, supply, installation, commissioning, and lifecycle asset management.

Subsidiaries and global reach

• SE Forge: A wholly owned subsidiary with substantial casting, machining, and forging capacities.
• Suzlon Global Services Limited (SGSL): Manages over 11.9 GW of wind assets in India, making it the second-largest operations and maintenance company in the Indian power sector.
• Research and Development: Suzlon has R&D centres in Germany, Denmark, the Netherlands, and India, focusing on advancing wind energy technologies.

Historical milestones

• 1995: Suzlon was incorporated and began with a 3 MW wind farm project in Gujarat.
• 1997: Received ISO 9001/2 certification from Det Norske Veritas (DNV).
• 2006: Acquired Hansen Transmission International NV, a major industrial gearbox manufacturer.
• 2018: Commissioned the S128 wind turbine generator, the largest in India at the time.

Business model and operations

Wind energy solutions

• Wind turbine generators (WTGs): Design, manufacture, and supply of WTGs.
• Project services: Installation, commissioning, and maintenance of wind energy projects.
• Asset management: Lifecycle management services for wind energy assets.

Innovations and product development

• S111 2.1 MW Turbine: Designed for low wind speed sites, offering high energy yield.
• S128 Turbine: Features the country's largest rotor blade, enhancing energy capture.
• S144 Model: Recently commissioned, representing the latest in Suzlon's technological advancements.

Financial performance

Quarterly results for Q1 FY25

• Net revenue: Suzlon reported a net revenue of Rs. 2,016 crore for Q1 FY25, a significant increase from Rs. 1,348 crore in Q1 FY24. This represents a year-over-year growth of approximately 49.5%.
• EBITDA: The earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at Rs. 370 crore, up from Rs. 199 crore in the same quarter last year. The EBITDA margin improved to 18.4% from 14.8% in Q1 FY24.
• Net profit after tax: The net profit after tax surged to Rs. 302 crore, marking a 200% increase compared to Rs. 101 crore in Q1 FY24. This growth underscores Suzlon's effective cost management and operational efficiency.

Operational performance

• Net volumes: The company achieved net volumes of 274 MW in Q1 FY25, a substantial rise from 135 MW in the previous year. This increase is attributed to the successful execution of its robust order book.
• Order book: Suzlon's largest-ever order book of 3.8 GW provides strong visibility for future growth. The company has made significant deliveries of its flagship 3.x MW S144 product series during the quarter.

Strategic developments

Leadership and governance

• Management changes: Suzlon welcomed Gurpratap Boparai as the CEO of Manufacturing, a strategic move to enhance Suzlon's manufacturing excellence and operational capabilities.
• Sectoral engagement: The company expressed its commitment to supporting India's vision for a greener and sustainable future, aligning with the Ministry of New and Renewable Energy's goals.

Innovation and product development

• Product portfolio: Suzlon continues to lead with its comprehensive range of wind turbines, including the 2 MW and 3 MW series. The successful deployment of the S144 model highlights Suzlon's focus on technological advancement and innovation.

Strategic Initiatives

Expansion and partnerships

• International projects: Engaged in projects across Europe, the Americas, and Asia.
• Joint ventures: Collaborated with CLP India for solar projects in Maharashtra.

Sustainability and innovation

• Renewable energy solutions: Continually developing new turbine models to enhance efficiency and reduce environmental impact.
• Corporate social responsibility: Recognised for its contributions to sustainable development and community engagement.

Shareholding and governance

• Ownership structure: Suzlon has a diverse ownership structure with significant institutional and retail investor participation.
• Corporate governance: The company adheres to high standards of corporate governance, ensuring transparency and accountability.

Suzlon Energy Ltd stands as a leader in the renewable energy sector, with a strong focus on innovation, sustainability, and global expansion. The company's robust financial performance in Q1 FY25, coupled with its strategic initiatives and technological advancements, positions it well for continued growth in the renewable energy landscape.