Amid the busy results season, Suzlon Energy is scheduled to announce its earnings for the June 2024 quarter on Monday, July 22. The company board will meet later today to consider and approve the unaudited financial results on standalone and consolidated basis for the quarter ended on June 30, 2024, said an exchange filing by Suzlon.
Analysts are expecting the company to report a strong year-on-year (YoY) performance, with its profits likely to jump manifold. On the other hand, sequential performance (QoQ) may remain subdued during the quarter. Revenue from operations or sales may also be muted but margins will be the key, they said.
Brokerage firms tracking the counter said that India's wind energy market has become very vibrant with a healthy order book with manufacturers and a more healthy order pipeline. They believe that ensuing policy actions will more likely be encouraging for domestic player’s like Suzlon Energy.
"Existing players are contemplating capacity expansion along with probable entry of new players particularly from China," said JM Financial. Suzlon’s net revenue to increase 36 per cent YoY on account of higher dispatches in spite of lower commissioning of WTG, it said with a buy call and a target price of Rs 54 on the stock.
JM Financial expects Suzlon's net profit at Rs 162.2 crore, up 61 per cent YoY but down 36 per cent QoQ. Ebitda may come in at Rs 239.2 crore, up 38 per cent YoY, but falling 33 per cent sequentially. The company may clock sales of Rs 1,832.1 crore, rising 36 per cent on a yearly basis, but down 17 per cent QoQ. "Higher dispatches due to good order inflows in 2HFY24," it added.
Ahead of its results, shares of Suzlon Energy Ltd were trading range-bound between Rs 54-55 on Monday, commanding a total market capitalization close to Rs 75,000 crore. The scrip had settled at Rs 54.54 in the previous trading session on Friday.
Nuvama Institutional Equities expects strong growth in execution to 250MW in Q1FY25 with robust order booking and OB position. "We expect PAT to expand 1.75 times on the back of pick up in execution," it said, expecting the company to report a net profit of Rs 277.8 crore, surging 175 per cent YoY and 9 per cent QoQ.
Nuvama pegs Suzlon's revenue at Rs 2,135.1 crore, up 58 per cent on a yearly basis, while sequentially, it may fall 3 per cent. Ebitda is seen at Rs 341. crore, a growth of 72 per cent YoY and 4 per cent down on a quarterly basis.
Anand Rathi Shares & Stock Brokers expects a strong performance by Suzlon because of more wind-turbine deliveries for Q1 FY25, leading to better profits aided by operating leverage. Suzlon remains among the top picks by the domestic brokerage with a target price of Rs 55 and a 'buy' rating.
Anand Rathi expects Suzlon to report a revenue of Rs 2,431.6 crore, surging 80 per cent YoY and 10.7 per cent QoQ. Ebitda margins may come in at 16.8 per cent, which was 16.3 per cent in the year ago period. Adjusted net profit is seen at Rs 325.2 crore, zooming 222.5 per cent YoY and 14.6 per cent QoQ.
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