Suzlon Energy Q2 net profit down 95.2 pct
October 31st, 2008 | by admin |Suzlon Energy Ltd, the world’s No. 5 wind turbine maker, said its standalone quarterly net profit tumbled 95.2 per cent on foreign exchange losses and provisioning for faulty blades.
Suzlon said net profit in the September quarter fell to 169.8 million rupees ($3.4 million) from 3.56 billion rupees reported a year ago.
Total income rose to 22.34 billion rupees from 16.95 billion.
Suzlon said currency losses on outstanding foreign loans and hedging were 2.3 billion rupees in the quarter. It also set aside 477.7 million rupees for restoration of faulty wind turbines and blade failures in the United States.
It said oustanding order book stood at 140.52 billion rupees, compared with 164.9 billion rupees at the end of July.
Producers of renewable energy equipment such as Suzlon were riding a boom as high oil prices and climate change concerns prompted countries to crackdown on greenhouse emissions, but the credit crisis is forcing developers to re-think projects.
Suzlon shares have been hammered 40.5 per cent over the last week after a large blade attached to a wind turbine supplied by it cracked and fell off on a corn field in the United States.
A unit of Edison International had cancelled orders for 150 turbines in June following cracks in blades.
In a separate statement, the company said it had dropped plans to invest in a tower manufacturing facility reducing its capital expenditure plan to 6.69 billion rupees. It did not elaborate.
On Monday, the company had dropped plans for a $360 million rights offer citing falling markets.
Suzlon shares fell 30 per cent in the September quarter, compared with a 4.5 per cent drop in the benchmark index.