Suzlon Energy witnessed another notable milestone today when its share price crossed the ₹50 mark during intraday trading, reaching ₹50.60 per share earning 4.9%. This follows a 5% higher circuit in the previous session, triggered by Union Finance Minister Nirmala Sitharaman’s announcement during the presentation of the interim budget for the fiscal year 2024-2025 in Parliament on February 1.
The finance minister offered assistance for the installation of rooftop solar systems in 1 crore houses under the “Pradhanmantri Suryodaya Yojana.”
Additionally, the finance minister announced viability gap funding for offshore wind power, specifically up to 1 GW capacity. This move is particularly positive for industry players like Suzlon Energy operating in the wind energy ecosystem, encompassing turbine manufacturing and Engineering, Procurement and Construction (EPC).
Read also: Budget 2024: government to provide life gap funding for 1GW offshore wind capacity
Suzlon Energy’s positive trajectory is further fueled by the company’s successful order wins in the wind energy sector and its diligent efforts to achieve debt-free status. These factors have instilled confidence among investors, contributing to a 440% increase in the company’s share value over the past year.
Notably, the company is present in all wind states in India, and its wind order book is on an upward trajectory. It grew from 652 MW in Q4 FY23 to 3,157 MW in January, providing good revenue visibility.
With a stronger balance sheet and robust performance, the company can significantly participate in the ongoing energy transition. In Q3 FY24, the company reported a 160% jump in its consolidated net profit to ₹203.04 crores. In the same period last year, the company recorded a net profit of ₹78.28 crores.
Also Read: Budget 2024 highlights: Income tax, infra, railways, EV and more – 15 key takeaways from FM Sitharaman’s speech
On a sequential basis, the net profit witnessed a remarkable increase of 52.62%, more than ₹133.15 crore in Q2 FY24. The income from operations for the reporting quarter showed a year-on-year improvement of 7.17%, reaching ₹1,552.91 crore as compared to ₹1,448.97 crore in Q3 FY23.
During the quarter, Suzlon Energy successfully lowered its financing cost to ₹14.28 crores from ₹86.28 crore in the corresponding period of the previous year. In Q2 FY24, the finance cost stood at ₹43.70 crores.
Also Read: Budget 2024: Solar stocks Suzlon Energy, Tata Power, others shine as FM offers rooftop solar aid for 1 crore homes
The operating profit during the December quarter jumped to ₹248 crore, up 15.34% YoY. The operating profit margin expanded to 16%, reflecting a 100 basis point increase compared to the same period last year. However, on a sequential basis, the operating profit margin remained flat.
At 10:00 am, the stock was trading with a gain of 4.88% at ₹50.55 each.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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Published: 02 Feb 2024, 10:12 IST