Suzlon Energy Ltd is scheduled to announce its results for the quarter and half year ending as of September 30, 2024 (Q2FY25 and H1FY25) today, that is, on Monday, October 28, 2024. Analysts tracking the counter believe that the wind turbine player is set to deliver a strong on a year-on-year (YoY) basis, while its quarter-on-quarter (QoQ) is seen as mixed.
Brokerage firms believe that Suzlon's sequential performance may remain muted on the back of a fall in Ebitda margins, which may drop more than 200 basis points (bps). Despite a strong revenue growth, the company may deliver flat-to-mild drop in Ebitda and PAT on a sequential basis.
Nuvama Institutional Equities sees Suzlon's revenue at Rs 2,454.1 crore, up 73 per cent YoY and 21 per cent QoQ. The company may report an Ebitda of Rs 398.8 crore, rising 77 per cent YoY and 8 per cent QoQ. Its core PAT may come in at Rs 324.6 crore, up 217 per cent YoY and 7 per cent YoY.
"We expect execution to be similar to Q1FY25 (274MW) at 300MW with slightly better realisations/MW and PAT to expand 3x on back on improved execution," added Nuvama, which has a 'hold' rating on Suzlon Energy with a target price of Rs 64.
Shares of Suzlon Energy dropped nearly 2 per cent to Rs 66.31 on Monday, against its close at Rs 67.43 on Friday. The total market capitalization of the company stood above Rs 90,000 crore. However, the stock has corrected 23 per cent in six week, from its 52-week high at Rs 86.04 hit on September 12, 2024.
JM Financial pegs Suzlon's Q2FY25 revenue at Rs 1,683.1 crore, up 18 per cent YoY but down 17 per cent sequentially. Ebitda is seen at Rs 271.3 crore, up 21 per cent YoY but falling 27 per cent YoY, with Ebitda margins contacting 220 bps QoQ to 16.1 per cent for the quarter. Net profit is seen at Rs 206.7 crore, up 102 per cent YoY but down 32 per cent QoQ.
JM Financial said that Suzlon may see an increase in revenue due to higher dispatches in the quarter and one off loss in Q2FY24 on account of sale of the subsidiary. It currently has a 'buy' rating on the stock with a target price of Rs 71.
Anand Rathi Research has pencilled Suzlon's revenue at Rs 2,775.7 crore, up 95 per cent YoY and 37.7 per cent QoQ. Ebitda margin for the reported quarter is seen coming in at 16 per cent, falling 210 bps on a sequential basis and mostly flat on yearly comparison. Adjusted PAT is likely to be at Rs 378 crore, zooming 175 per cent YoY and 25 per cent QoQ.
Anand Rathi expects robust performances by Suzlon with higher delivery volumes at 274 MW (up 108 per cent YoY) for Q2FY25. "Profits to rise, supported by higher deliveries and operating leverages," it said. It currently has a 'buy' rating on the stock with a target price of Rs 76.