Feb. 15 (Bloomberg) — 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.
To contact the reporter on this story:
Archana Chaudhary in New Delhi at
achaudhary2@bloomberg.net
To contact the editor responsible for this story:
Sam Nagarajan at
samnagarajan@bloomberg.net
