Suzlon Energy (SUZLON) Q1 24/25 earnings summary

Executive summary

• Achieved highest Q1 deliveries in 7 years at 274 MW, with a record order book of 3.8 GW as of June 2024, reflecting strong customer confidence and technological leadership.

• Consolidated net profit for Q1 FY25 rose to ₹302.29 crore, up from ₹100.90 crore year-over-year, with PAT up 200% and the highest quarterly EBITDA and PAT in nearly seven years.

• Q1 FY25 saw robust growth in financial and operational metrics, driven by strategic initiatives and strong operational execution.

• Net cash position improved to ₹1,197 crore as of June 30, 2024, supporting ongoing growth and working capital needs.

• Focus remains on quality orders, timely execution, and maintaining high standards in ESG and service.

Financial highlights

• Q1 FY25 revenue reached ₹2,016 crore, up 50% year-over-year, with consolidated EBITDA at ₹370 crore and EBITDA margin of 18.4%.

• Net profit before exceptional items was ₹302 crore, up from ₹93 crore in Q1 FY24; consolidated EPS for the quarter was ₹0.22.

• Gross debt reduced to ₹101 crore, with strong cash and cash equivalents of ₹1,299 crore.

• Contribution margin stood at 35.3% in Q1 FY25, up from 33.6% in Q4 FY24.

• Net worth as of June 2024 is ₹4,253 crore.

Outlook and guidance

• Indian wind sector expected to achieve 5 GW installations in FY 2025, with sector growth projected to reach 6.5-7 GW in FY 2026 and 8-9 GW by FY 2028.

• Manufacturing capacity currently at 3.5-4 GW per year, with plans for further expansion by FY 2026.

• Strong revenue visibility supported by the largest ever domestic order book and robust pipeline.

• Favorable market conditions and policy support expected to drive wind sector growth in India.

• The company is reassessing its reserve reorganisation in light of a proposed merger of a subsidiary.