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UBS Investment Research
Suzlon Energy
1 Q FY12: Results better than expectations
1Q FY12 – Rs66m PAT on a recurring basis
In 1Q FY12, Suzlon’s operating income increased 82% y/y to Rs43.8 and EBITDA
was Rs4.9bn (with 11.2% margins). Reported profit was Rs601m (vs. Rs9.1bn loss
in 1Q FY11) and post adjustment for Rs535m forex gain, the recurring profit was
Rs66m (vs. Rs7.3bn loss in 1Q FY11). The results are significantly ahead of UBS
estimates (UBS-e of Rs1bn loss for 1Q FY12). The key reason was strong MW
delivery in 1Q FY12 (437MW vs. 207MW in 1Q FY11) from Suzlon.
237MW new orders for Suzlon in 1QFY12, Order book decline is a worry
Suzlon has won 237MW of new orders in 1Q FY12 (205MW in India and 32MW
in North America) and after strong sales in 1Q, the Suzlon order book has declined
to 2,030MW (from 2,231MW as of end FY11). There is also a marginal decline in
Suzlon’s group order book to Rs293bn (from Rs301bn as of end FY11). The group
order book includes Rs180bn order book of REPower.
Conference call on Monday, 1st August 2011 at 4:00pm IST
We expect to receive more details on Suzlon’s business performance and near-term
outlook in the call. However, the key developments for 1Q FY12 are as follows; a)
REPower ‘squeeze out’ process is on track with Suzlon’s offer of
Euro142.77/share for acquiring remaining shares, the total ‘squeeze out’ costs to be
~Euro63m, b) Hansen stake sale to generate Rs8.3bn, exit from Hansen has been
completed.
Valuation: Sell rating with a DCF based PT of Rs50
We have a Sell rating on poor order inflow from overseas markets for Suzlon and
no near-term catalysts.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
UBS Investment Research
Suzlon Energy
1 Q FY12: Results better than expectations
1Q FY12 – Rs66m PAT on a recurring basis
In 1Q FY12, Suzlon’s operating income increased 82% y/y to Rs43.8 and EBITDA
was Rs4.9bn (with 11.2% margins). Reported profit was Rs601m (vs. Rs9.1bn loss
in 1Q FY11) and post adjustment for Rs535m forex gain, the recurring profit was
Rs66m (vs. Rs7.3bn loss in 1Q FY11). The results are significantly ahead of UBS
estimates (UBS-e of Rs1bn loss for 1Q FY12). The key reason was strong MW
delivery in 1Q FY12 (437MW vs. 207MW in 1Q FY11) from Suzlon.
237MW new orders for Suzlon in 1QFY12, Order book decline is a worry
Suzlon has won 237MW of new orders in 1Q FY12 (205MW in India and 32MW
in North America) and after strong sales in 1Q, the Suzlon order book has declined
to 2,030MW (from 2,231MW as of end FY11). There is also a marginal decline in
Suzlon’s group order book to Rs293bn (from Rs301bn as of end FY11). The group
order book includes Rs180bn order book of REPower.
Conference call on Monday, 1st August 2011 at 4:00pm IST
We expect to receive more details on Suzlon’s business performance and near-term
outlook in the call. However, the key developments for 1Q FY12 are as follows; a)
REPower ‘squeeze out’ process is on track with Suzlon’s offer of
Euro142.77/share for acquiring remaining shares, the total ‘squeeze out’ costs to be
~Euro63m, b) Hansen stake sale to generate Rs8.3bn, exit from Hansen has been
completed.
Valuation: Sell rating with a DCF based PT of Rs50
We have a Sell rating on poor order inflow from overseas markets for Suzlon and
no near-term catalysts.
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