Wind turbine giant Suzlon posted a net loss of 1.88bn rupees ($40.4m) in the fourth quarter of its 2009/2010 financial year, the company has announced.
In the corresponding period a year ago the Indian firm made a profit of 3.15bn rupees.
Revenue for the three months ending 31 March 2010 dived to 60.84bn rupees, compared to 91.21bn rupees in the same period the previous year.
Suzlon recorded a full year net loss of 9.83bn rupees and revenue of 20.62bn rupees, the company’s financial statement shows.
“This has been a difficult year for the wind industry,” says Tulsi Tanti, Suzlon chairman and managing director.
“While market conditions continue to be challenging, we have made encouraging progress. We are working on improving order pipelines the world over,” Tanti says.
As of 26 May, the Suzlon wind order book stood at 1.1 gigawatts, or 61.74bn rupees.
REpower, a German turbine firm acquired by Suzlon, reported an order backlog, including purchase agreements, with a potential sales volume of about €2.1bn ($2.6bn) as of 31 March 2010, up from €1.5bn at the same time last year.
Tanti says companies in Europe are postponing orders for turbines as the debt crisis slashes funds for renewable energy projects.
However, he expects Asian demand and offshore projects in Europe to increase Suzlon’s orders by at least 20 per cent in the next five years.
Meanwhile, other reports said Suzlon will raise funds through rights issue to repay its debt.
The rights issue committee of directors at its meeting held yesterday, has decided to allot 2 equity shares for every 15 shares held by the existing shareholders on a rights basis, Suzlon said in a filing to the Bombay Stock Exchange.
The company would offer these shares at Rs 63 a piece, a premium of nearly 12 per cent over the yesterday’s closing price at Rs 56.30 on the BSE.
Shares of Suzlon Energy were trading at Rs 55.75 on the BSE, down 0.98 per cent from its previous close.
