Suzlon Energy share price jumped around 17% on Wednesday to hit a 52-week high of Rs 14.35 apiece. The stock settled over 8% higher in the previous session. The shares of the renewable energy solutions company have been in an uptrend for quite some days now
The surge in Suzlon Energy shares price comes as it becomes the first Indian wind energy firm to surpass 20 GW in wind energy installations through 12,467 wind turbines installed across 17 countries, spanning six continents
The 20 GW milestone has solidified Suzlon's position as a significant player in the global wind energy landscape. The group has a diverse workforce of 5,900 employees with over 28 years of operational track record. Suzlon has the largest service portfolio of 13.9 GW of wind energy assets in the country
In the last one month, Suzlon Energy shares have rallied more than 60%. The stock which was priced at Rs 8.55 apiece on May 8, 2023, is now priced at around Rs 14. In the last one year, the stock has jumped more than 80%. Suzlon shares have also been rising amid optimism over improvement in its balance sheet and industry tailwinds
In Q4FY23, Suzlon Energy achieved a consolidated net profit of Rs 320 crore, benefiting from reduced expenses. This marks a significant improvement compared to the consolidated net loss of Rs 193 crore reported in the same period last year. For FY23, Suzlon recorded a consolidated net profit of Rs 2,877 crore, as opposed to a net loss of Rs 166 crore in the previous fiscal year
In its earnings call, Suzlon group CEO JP Chalasani said his company's cumulative orders of 1,542 megawatts are the highest since 2019. These orders, he said, included the order book of 652 megawatt as on March 31, 2023, plus orders secured subsequently of 890 megawatts
"Our priority going forward is to pursue quality orders with a higher value and better margins. Our focus remains on execution and building our order book. Our OMS business continues to do well. It has over 16 gigawatts of renewable capacity under maintenance globally, out of which close to 14 gigawatt is in India," said CEO JP Chalasani
On industry tailwinds for the company, Emkay Global said in a note recently that the government of India is expected to invite annual wind capacity bids of 10 GW across eight windy states, single-stage closed bids, and ISTS waiver for 25 years, which offer a visible trajectory of the wind pipeline
"The improvement in balance sheet is on the back of the company’s operation and maintenance service (OMS) and wind turbine generator (WTG) arms, along with industry tailwinds, restructuring, refinancing and a successful rights issue," said Emkay Global on Suzlon Energy, adding that Suzlon’s portfolio ranges from 225 kW to the newly-launched 3MW-S414 series, which contributes 51% of the current order book (1,542MW)
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