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Business News/ Companies / Company-results/  Better market mix helps Suzlon narrow Q2 loss to Rs656 crore
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Better market mix helps Suzlon narrow Q2 loss to Rs656 crore

Sales grew by 11.85% to `5,378.89 crore in the quarter from `4,808.90 crore for the year-earlier quarter

Ebitda for the reporting quarter was at `114 crore against an operating loss of `31 crore for the corresponding quarter last year. Photo: BloombergPremium
Ebitda for the reporting quarter was at `114 crore against an operating loss of `31 crore for the corresponding quarter last year. Photo: Bloomberg

Mumbai: Wind turbine maker Suzlon Energy Ltd’s net loss narrowed to 656.21 crore for the quarter ended 30 September, from 782.37 crore a year ago, because of a better operational performance and market mix.

Sales grew by 11.85% to 5,378.89 crore in the quarter from 4,808.90 crore for the year-earlier quarter.

In a statement, Suzlon Energy said it had posted its third consecutive quarter of positive earnings before interest, depreciation, taxes and amortization (Ebitda) at a consolidated level.

Ebitda for the reporting quarter was at 114 crore against an operating loss of 31 crore for the corresponding quarter last year.

Kirti Vagadia, group head of finance, said the company had achieved a positive Ebitda in the first half of the fiscal year, which is historically lower than the second half.

“We have improved our gross margin by 500 basis points in the first half of FY15, primarily due to better product and market mix. We continue to optimize our working capital to improve our operational performance," Vagadia said. One basis point is one-hundredth of a percentage point.

Suzlon’s order book stood at 4.6 GigaWatt, valued at $6.3 billion.

The company’s creditors on 24 January 2013 approved a 9,500 crore debt restructuring plan, agreeing to enhance working capital facilities by 1,800 crore and backed a 10-year back-ended repayment plan.

Early in May, Suzlon, the world’s fifth largest wind turbine maker, announced a cash-less restructuring of its existing foreign currency convertible bonds (FCCBs) worth $485 million for five years, after nearly one-and-half years of complex negotiations with bondholders.

The Pune-based company has four different series of FCCBs issued to investors. Suzlon failed to repay $209 million of debt on 11 October 2012 after bondholders rejected its request for a four-month extension. The default was the biggest on convertible bonds by an Indian company.

As a part of the restructuring, Suzlon will issue about $485 million of new bonds that will have a maturity period of five years and one day from the date of issuance.

Shares of Suzlon Energy gained 1.97% to close at 13.45 on Friday on BSE, while the benchmark Sensex rose 1.9% to close at a record 27,865.83 points. The power index gained 1.94% to close at 2,166.41 points.

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Published: 31 Oct 2014, 07:41 PM IST
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