Suzlon Group, India’s leading provider of renewable energy solutions, has announced a significant upgrade in its credit ratings from CRISIL. CRISIL upgraded Suzlon’s ratings to ‘A-‘ with a Positive Outlook, on March 27, 2024.
CRISIL Ratings has upgraded its ratings on Suzlon’s banking facilities to “CRISIL A-/Positive/CRISIL A2+” from “CRISIL BBB+/Positive/CRISIL A2”.
Commenting on this achievement, Himanshu Mody, Chief Financial Officer, Suzlon Group, said, “We are pleased with the upgrading of banking facilities by CRISIL, which is in line with our efforts to achieve financial flexibility, and indicates the strong financial position of the company. Achieving this milestone reflects our continuous focus on sound financial management, operational excellence and sustainable growth.”
Shares of Suzlon Energy traded in the green, up 4.07 percent ₹38.60 on March 27, on BSE at 11:51 am. The company enjoys a market capitalization of ₹51,128.20 crores. Suzlon Energy share price is still more than 20 percent down from its 52-week high of ₹50.72.
Suzlon’s share price has experienced some recent volatility due to market concerns surrounding the Ministry of New and Renewable Energy’s (MNRE) potential return to “reverse auctions” for wind power capacity allocation. While this policy change could impact profitability in the short term, Suzlon’s long-term prospects remain positive.
Meanwhile, SEBI chairman Madhabi Puri Buch earlier this month highlighted concerns over strained valuations observed in both small and mid-cap stocks, highlighting the risks associated with the continued rally in these segments. Her warning about the bubble in small and midcap stocks, pointing to off-the-shelf valuations and potential price manipulation, contributed to the sharp decline in small and midcap stocks, including Suzlon Energy.
The rating upgrade highlighted Suzlon’s performance, notably exceeding expectations with improved margins in its wind turbine generator (WTG) business. CRISIL also noted the company’s continued healthy cash flow generation from operations and maintenance (O&M) services, along with a growing order book that provides strong visibility for future revenue streams.
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Published: 27 Mar 2024, 12:46 IST