Suzlon Energy share price today hit a fresh over 14-year high of Rs 80.40 on the BSE on Monday. Suzlon shares were locked at 5-per cent upper circuit in the intraday trade. The stock of one of the leading global renewable energy solutions providers is trading higher for a fourth straight day after the Group executed definitive agreements for the acquisition of a 76 per cent stake in Renom Energy Services Private Limited (Renom), in two tranches, from the Sanjay Ghodawat Group (SGG).
Renom is the largest Multi-Brand Operations and Maintenance service (MBOMS) provider in the country with assets of 1,782 MW in Wind, 148 MW in Solar, and 572 MW in BOP under maintenance across customer segments.
In the past one month, the market price of Suzlon has zoomed 50 per cent. The stock is trading at its highest level since March 2010. In the past 15 months, it has skyrocketed 879 per cent from a level of Rs 8.21 touched on May 12, 2023.
Suzlon Group is one of the leading renewable energy solutions providers in the world with ~20.8 GW of wind energy capacity installed across 17 countries. The Group comprises Suzlon Energy and its subsidiaries.
Suzlon is also India’s No. 1 wind energy service company with the largest service portfolio of over 14.8 GW in wind energy assets. The Group has ~6 GW of installed capacity outside India. Suzlon offers a comprehensive product portfolio led by the 2 MW and 3 MW series of wind turbines.
In Q1FY25 (April-June quarter), Suzlon reported its highest quarterly earnings before interest, taxes, depreciation, and amortisation (Ebitda) in seven years at Rs 370 crore.
Suzlon’s revenue came at Rs 2,021 crore as against Rs 1,348 crore, up 50 per cent year-on-year (Y-o-Y). In terms of volume, the company executed 274 MW vs 135 MW Y-o-Y. The company reported a three-fold jump in Q1FY25 consolidated net profit at Rs 302.29 crore, as compared to Rs 100.90 crore in the corresponding quarter a year ago.
Ebitda margins came in at 18.4 per cent up 360 bps Y-o-Y. Current order backlog stands at 3817 MW vs 2929 MW QoQ.
The management said this is one of the best quarters in seven years wherein Suzlon has outperformed across the various performance parameters. This performance comes as a result of several strategic and transformative steps the company took in the last three to four years.
The future of India’s Renewable Energy industry is poised for exponential growth. Global Wind Energy Council (GWEC) expects India to reach 122GW of installed wind capacity by FY32E. Moreover, the government plans to conduct 10GW of exclusive wind tenders per annum until 2027. This signals an upcycle for wind OEMs like Suzlon Energy.
Suzlon, with its positive net worth, has started bidding for PSU (including NTPC) tenders. Since January 1, 2023, a total of 56 tenders with 55.4GW for utility scale vanilla wind (including 1,110MW NTPC Gujarat) and various wind-combinations have been issued, which have an estimated wind component of at least 20GW, giving a healthy pipeline of opportunities going forward, according to analysts at JM Financial Institutional Securities.
First Published: Aug 12 2024 | 11:23 AM IST
