Suzlon Falls Most in 8 Months After Quarterly Loss: Mumbai Mover
Suzlon Energy Ltd., India’s largest wind-turbine maker, plunged the most in more than eight months in Mumbai after reporting a wider-than-expected loss in the quarter ended December.
The shares fell 8.6 percent, the biggest decline since May 31, to 21.70 rupees at the close.
The Pune-based turbine maker yesterday reported a third- quarter loss of 11.56 billion rupees ($214 million), compared with an 810 million-rupee shortfall a year earlier. Four analysts surveyed by Bloomberg expected a 6 billion-rupee loss. This was Suzlon’s fifth consecutive quarter of losses as debt repayment costs ate into working capital and hurt its ability to complete sales.
“Suzlon will find it difficult to find its feet,” said Jagannadham Thunuguntla, chief strategist at SMC Global Securities in Mumbai. “The orders they are getting are not sufficient enough to influence their balance sheet.”
Suzlon completed refinancing $1.8 billion of domestic debt last month following a default on $209 million of foreign- currency convertible notes on Oct. 11, India’s biggest payment failure of such bonds.
Suzlon is working on selling “non-critical” assets including its China unit Suzlon Energy (Tianjin) Ltd., which may raise $60 million, Kirti Vagadia, chief financial officer said yesterday in phone interview. It also plans to sell component- making units across the world over the next two years to raise funds to repay lenders, he said.
Suzlon shares have dropped 25 percent in the past year, compared with a 7 percent gain in India’s benchmark Sensitive Index.
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