Suzlon Energy (SUZLON) Q2 24/25 earnings summary

Executive summary

• Achieved strong quarterly and half-yearly growth, with Q1 FY25 revenue up 50% YoY and H1 FY25 revenue up 49% YoY, driven by strategic initiatives and robust operational performance.

• Consolidated net profit for Q2 FY25 was ₹200.60 crore, with H1 FY25 net profit reaching ₹660.35 crore, reflecting significant YoY increases.

• Net cash position improved to Rs 1,277 crore as of September 2024, with strengthened balance sheet and reduced gross debt.

• Secured the largest single order of 1,166 MW from NTPC and completed the acquisition of Renom, expanding into multi-brand O&M.

• Monetized non-core asset 'One Earth' for Rs 440 crore and completed a major sale-leaseback of the corporate office, enhancing liquidity.

Financial highlights

• H1 FY25 revenue rose to Rs 4,109 crore, up 49% YoY; Q2 FY25 revenue was Rs 2,093 crore, up 48% YoY; consolidated EBITDA for H1 FY25 was Rs 702.90 crore.

• PAT for H1 FY25 surged to Rs 503 crore, up 147% YoY; Q2 FY25 PAT was Rs 201 crore, up 96% YoY.

• Net cash position at Rs 1,277 crore as of Sep 2024, with gross debt reduced to Rs 232 crore.

• Contribution margin for H1 FY25 at 35.2%; EBITDA margin at 16.2%.

• Consolidated total assets as of September 30, 2024, were ₹9,648.67 crore, with total equity at ₹4,693.13 crore.

Outlook and guidance

• 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 from FY28 onwards.

• Industry in a structural upcycle with projected 7% CAGR in energy demand from FY24 to FY30; India targets 122 GW wind capacity by 2031-32.

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

• Order book of 3.8 GW to be executed mostly over FY25 and FY26, with some into early FY27; highest ever domestic order book of 5.1 GW.

• Company well-positioned to benefit from policy support, export opportunities, and energy transition initiatives.