Suzlon Shares in Focus: Released Q2 FY25 Results

On Tuesday, October 29, 02024, Suzlon Energy shares, India’s largest renewable energy solutions provider, saw a nearly 4% increase to a day high of ₹73.50. This surge came as investors reacted positively to the company’s September quarter results for Q2FY25, which was released on October 28, 2024. 

Q2 FY25 Highlights

Suzlon Energy posted a healthy performance, wherein, it ramped up execution to 274 MW in Q2 FY25, a significant increase from 132 MW in Q2 FY24. This led to net revenue of ₹2,093 crore, reflecting a robust 48% year-over-year improvement. Despite this growth, net profit reached ₹201 crore, marking a substantial 96% year-over-year increase but a 34% decline quarter-over-quarter. The EBITDA margin, however, decreased to 14.1%, down from 15.9% in the previous quarter, primarily impacted by elevated employee stock ownership plan (ESOP) costs. During this quarter, 

Signing of Significant Agreements

Suzlon signed India’s largest wind energy order, totalling 1,166 MW, with NTPC Green Energy Limited. This contract involves the installation of 370 wind turbine generators (WTGs) featuring the S144 model, each with a rated capacity of 3.15 MW, utilising a hybrid lattice tubular (HLT) tower design.

The agreement encompasses two projects for NTPC Renewable Energy Limited, a wholly owned subsidiary of NTPC Green Energy Limited, and one project for Indian Oil NTPC Green Energy Pvt. Ltd., a group company of NTPC. By the end of the September quarter, Suzlon’s S144 wind turbine secured a strong order book totaling 4.7 GW. The company is also ramping up its manufacturing capacity for this product. A notable order inflow of 1.6 GW during the quarter has resulted in a record-high order book of 5.1 GW, ensuring strong revenue visibility moving forward.

Additionally, during the quarter, Suzlon executed definitive agreements to acquire a 76% stake in Renom Energy Services Private Limited from the Sanjay Ghodawat Group. This acquisition is structured in two tranches and positions Renom as the largest Multi-Brand Operations and Maintenance Service (MBOMS) provider in India. Renom manages assets across various customer segments, including 1,782 MW in wind, 148 MW in solar, and 572 MW in balance-of-plant (BOP) services.

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