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SUZLON: Key takeaways
Low demand in international market exerting margin pressure. The management said that
demand for wind power in the international market is limited and there are excess
capacities to add to the problems. Additionally, an increasing number of projects are
being postponed, owing to outstanding funding commitments.
Working capital and debt raise concerns. The management highlighted that its
working capital has increased about Rs2.5 bn in the past quarter. Gross debt has also
increased by bout Rs6 bn due to working capital increase and additional capex.
Domestic demand present though competitors turning aggressive. The
management estimates the Indian market size at 2,200 MW in current fiscal and
estimates it to grow to 3,500 MW by next year. It highlighted that domestic companies
such as Enercon and many other small and medium-sized companies have become
increasingly aggressive in their bids.
Suzlon's business has been adversely affected in the past year due to several
company specific issues (blade cracking problems, high availability related charges, stress
on balance sheet due to buyout of REpower).
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
SUZLON: Key takeaways
Low demand in international market exerting margin pressure. The management said that
demand for wind power in the international market is limited and there are excess
capacities to add to the problems. Additionally, an increasing number of projects are
being postponed, owing to outstanding funding commitments.
Working capital and debt raise concerns. The management highlighted that its
working capital has increased about Rs2.5 bn in the past quarter. Gross debt has also
increased by bout Rs6 bn due to working capital increase and additional capex.
Domestic demand present though competitors turning aggressive. The
management estimates the Indian market size at 2,200 MW in current fiscal and
estimates it to grow to 3,500 MW by next year. It highlighted that domestic companies
such as Enercon and many other small and medium-sized companies have become
increasingly aggressive in their bids.
Suzlon's business has been adversely affected in the past year due to several
company specific issues (blade cracking problems, high availability related charges, stress
on balance sheet due to buyout of REpower).
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