Suzlon Energy (SUZLON) Q2 24/25 earnings summary

Executive summary

• Achieved strong quarterly and half-yearly growth across all key financial and operational parameters, with significant YoY increases in revenue, EBITDA, and PAT for H1 and Q2 FY25, driven by strategic initiatives and robust order book.

• Delivered 274 MW in Q1 FY25, more than double the 135 MW delivered in Q1 FY24, and secured the largest single order of 1,166 MW from NTPC.

• Net cash position improved to Rs 1,277 crore as of Sep 2024, reflecting a strengthened balance sheet and liquidity from asset monetization.

• Completed the acquisition of Renom Energy Services, expanding into multi-brand O&M and reinforcing sector leadership.

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

Financial highlights

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

• H1 FY25 EBITDA reached Rs 702.90 crore, up from Rs 343.82 crore YoY; PAT surged 147% to Rs 503 crore for H1 and doubled to Rs 200.60 crore in Q2.

• 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 Sep 2024 were Rs 9,648.67 crore, with total equity at Rs 4,693.13 crore.

Outlook and guidance

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

• Industry in a structural upcycle with projected 7% CAGR in energy demand from FY24 to FY30 and strong wind bidding pipeline of 35+ GW.

• India targets 122 GW wind capacity by 2031-32 and 500 GW non-fossil fuel energy by 2030.

• 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.