Suzlon Energy Ltd is set to announce its earnings for the quarter and financial year ended on March 31, 2024 on Friday, May 24. Brokerage firms, tracking the counter, expect the renewable energy player to report a strong set of numbers in the period under review.
Analysts expect Suzlon Energy's revenue to rise sharply on a both year-on-year (YoY) and quarter and quarter (QoQ) basis on the back of capacity addition, while adjusted net profit may jump manifold on a sequential basis. Ebitda is also increasing sharply despite a 300-350 basis points (bps) contraction in the ebitda margins.
Brokerage firm JM Financial expects Suzlon Energy's revenue to come around Rs 2,762.1 crore, up 63 per cent YoY and 77 per cent QoQ on the account of higher wind power capacity additions. India added 3,253MW of wind capacity during FY24, up 43 per cent YoY.
The brokerage sees net profit at Rs 324.2 crore, up 16 per cent YoY and 60 per cent sequentially after significant reduction in debt. Ebitda is seen at Rs 366.6 crore, up 58 per cent YoY and 48 per cent QoQ, despite Ebitda margins contracting to 13 per cent in the quarter, down 260 bps sequentially. JM Financial has a target price of Rs 54 on the stock with a buy rating.
Another domestic broker Anand Rathi Shares and Stock brokers expects strong Wind Turbine deliveries in Q4 and have factored in 313MW for Suzlon. This would translate to sharp growth in earnings. Order books of over 5.6GW at end Q3FY24 provide strong earnings assurance for FY 25/26, said the brokerage.
Anand Rathi sees Suzlon Energy's revenue at Rs 2,581.7 crore, up 52.4 per cent YoY and 65.4 per cent QoQ. Ebitda margin is likely to be seen contracting to 12.6 per cent, falling 330 bps QoQ. The expected adjusted net profit to come in at Rs 262.2 crore, up 283 per cent YoY and 29.1 per cent sequentially. It has a 'buy' rating on the stock with a target price of Rs 41 on the stock.
Shares of Suzlon Energy settled at Rs 48.25 on Thursday, hitting an upper circuit of 5 per cent for the day ahead of its earnings. The company's total market capitalization stood at above 65,500 crore mark for the day.
Antique stock broking sees India as a global manufacturing hub in renewable energy, which can be a manufacturing hub for wind, solar, and green hydrogen and scale-up for bio-energy manufacturing facilities. It has kept Suzlon Energy among the key beneficiaries of this.