Troubled turbine manufacturer Suzlon made a loss of Rs778 crores (€98m) in the second quarter of the 2020 financial year, a wider loss than the Rs628 crores reported in the same period last year.
The company also reported a loss of earnings before interest, tax, depreciation and amortisation of Rs243 crores in the last quarter, while revenue fell to Rs803 crores from Rs851 crores.
Suzlon chief financial officer Swapnil Jain said: “Our operations are at a sub-optimal level due to liquidity challenges being faced by the company.
“We remain focused on cost optimisation across the board including cost of goods sold and fixed costs.
“We are committed and tirelessly working along with our lenders towards a holistic debt resolution and fixing the capital structure to align with our earning capability under the new market paradigms.”
An independent review of the results by Deloitte Haskins & Sells said that Suzlon is under “severe liquidity stress”.
It added that an improvement in liquidity is contingent upon the acceptance and implementation by the company’s lenders of a proposed restructuring plan.
Suzlon Group chief executive JP Chalasani said: “The sector is witnessing issues on project execution due to some policy issues but there has been some healthy growth in installations over the last year.”
He said that the wind capacity added in India in the first half of the 2020 financial year was about 1304MW compared with 569MW in the same period of 2019.
Chalasani said: “Our operations are at a subdued level with minimal allocation of funding as we are trying to fix our capital structure.
“In the recently concluded auctions, we have seen the tariffs are stabilising and there is immense opportunity for the long-term sustainable growth of the wind sector.
“Our operation and maintenance services business continues to deliver strong profitability and high machine performance for the customers, surpassing industry benchmarks.
“India is expected to be a relatively high volume market once the transitional problems and policy uncertainty are addressed.
“We continue to work determinedly for a sustainable long term debt resolution plan with our consortium of lenders, to preserve the value of the company.”