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 market leadership.

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

• Total consolidated income for the quarter was ₹2,044.35 crore, compared to ₹1,361.68 crore in Q1 FY24.

• Net cash position improved to ₹1,197 crore as of June 30, 2024.

• Focus remains on quality orders, higher value, and better margins, with a differentiated end-to-end business model.

Financial highlights

• Q1 FY25 revenue grew 50% year-over-year to ₹2,016 crore, 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.

• Gross debt reduced to ₹101 crore; net cash position at ₹1,197 crore.

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

• Consolidated EPS for the quarter was ₹0.22, compared to ₹0.08 in Q1 FY24.

Outlook and guidance

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

• Indian wind sector expected to achieve 5 GW installations in FY25, with sector growth projected to reach 6.5-7 GW in FY26 and 8-9 GW by FY28.

• Manufacturing capacity currently at 3.5-4 GW per year, with plans for further expansion by FY26.

• Focus on timely execution of the robust order book and maintaining high standards in quality and ESG.

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