"We have booked a loss in the first quarter mainly due to lower volumes and a significant, but effectively notional, forex loss," Suzlon Energy Limited Chief Financial Officer Robin Banerjee said.
Suzlon's consolidated income declined to Rs 2,399 crore during the April-June, 2010, period from Rs 4,153 crore in the corresponding period last year.
"Historically, Q1 has contributed about 10 per cent of annual volume and this quarter has been no exception. But the group's order book is very strong with around USD 4.9 billion (Rs 22,700-crore). Our Indian order book is the highest-ever at 580 MW as of date,"
Banerjee told PTI here today.
The order book of its overseas entity, REpower, stood at 2.42 billion euros as on June 30, he said. As volumes increase in the coming quarters, the company expects better margins, he said.
"This has been a challenging quarter for us. However, we see strong momentum for the wind sector led out of emerging economies -– particularly India, China, Brazil and western Europe -- while the US and selective European markets remain difficult," Suzlon
Energy Limited Chairman and Managing Director Tulsi Tanti said. The company has higher expectations from emerging markets and will expand its business in China and Brazil, Banerjee said. The company is looking at other Latin American destinations like Chile, Argentina, Venezuela and is betting big on South Africa as well, he said.
The company has achieved the financial closure of debt refinancing and consolidation of Rs 10,690 crore, including a holiday of two years in principal repayments and removal of covenants. It has also successfully completed a rights issue of Rs 1,188 crore towards reduction of debt, Banerjee said.
Suzlon continues to be the leader in India with approximately 60 per cent market share, Banerjee said.
India has seen accelerating policy support at both the state and central government levels, with new guidelines formulated for wind power tariff calculation and the renewable energy certificates (REC) trading mechanism.
Recommendations for state commissions to specify a minimum Renewable Purchase Obligation (RPO) of 5 per cent by 2010 are also in place, which gives great potential for growth, he said.
Wind power capacity in Brazil is expected to grow from approximately 700 MW to 6 giga-watts (GW) by 2019. Suzlon is currently the market leader in Brazil, accounting for half of all wind power installations in the South American nation.
The China market has seen competitive changes over the past year with removal of the local content requirement for turbine manufactures and amendments to the RE law, besides removal of import duties and VAT on wind and hydro equipment.
China also recently announced a USD 700 billion commitment to develop cleaner sources of energy over the next decade, he said.