The loss widened to 2.86 billion rupees ($58 million) in the three-month period that ended Dec. 31 from 2.54 billion rupees a year earlier, the company said in a statement today. That compares with the median estimate of a 625 million-rupee loss by six analysts in a Bloomberg survey.
The Pune-based manufacturer may be at risk of slowing orders in Europe, where it gets more than 50 percent of its contracts, Alchemy Share & Stock Brokers Pvt. said in a Feb. 2 note. Wind turbine makers are struggling with narrowing margins after reducing prices to compete for orders as U.S. and European governments cut clean-energy incentives to curb budget deficits.
The company cut its forecast for full-year sales to as low as 210 billion rupees, according the statement. Sales were 145 billion rupees in the first nine months.
“In spite of having our best-ever order book, we have had lower volumes” in the third quarter, Chairman Tulsi Tanti said in the statement. “As a Group we are extremely well positioned in the global marketplace, and with our strong order backlog we expect to deliver nearly 40 percent growth in revenue in the next fiscal.”
Suzlon’s taxes in the quarter rose more than fourfold to 1.34 billion rupees, while interest costs increased 21 percent, according to the statement. “International deferred tax liabilities” were at 1.21 billion rupees, the company said.
“The deferred tax liability is not a tax increase, it is a result of the difference in accounting norms between Suzlon Group and Suzlon’s German subsidiary Repower AG,” the company said in a separate statement, without elaborating.
Suzlon shares fell 2.1 percent to 30.80 rupees on Feb. 10 in Mumbai, paring the year’s gains to 71 percent. The benchmark Sensitive Index (SENSEX) has advanced 15 percent in 2012.
Vestas Wind Systems A/S of Denmark, the biggest turbine maker, announced a loss in 2011 that was four times wider than expected on Feb. 8. Sinovel Wind Group Co., China’s biggest supplier, said Jan. 30 it expects 2011 earnings to fall by more than 50 percent.
To contact the editor responsible for this story: Reed Landberg at firstname.lastname@example.org