Suzlon has posted a RS743 crores (€95m) loss in the quarter ending 31 December 2019 according to the manufacturer’s latest financial results, as its troubled wind turbine business continues to operate at a “subdued level”.
The manufacturer also recorded a 632MW order book deficit.
In its third quarter results ending 31 December 2019 the company made an operating loss (earnings before interest, tax, depreciation and amortisation) of Rs92 crores in the quarter, compared with Rs73 crores in EBITDA in the same quarter from a year ago.
During the quarter, Suzlon said 632.1MW has been considered as “cancelled from the order book due to teething troubles of land, power evacuation and other constraints.”
Suzlon chief financial officer Swapnil Jain said, “Our wind turbine business operations continue to be at a subdued level with nominal allocation of capital as we are working towards a holistic debt resolution with the lenders consortium.”
He said the company is “diligently” working with its lenders towards a “holistic debt resolution” and fixing the capital structure.
Last month shares in Suzlon fell 10% after the company said it had defaulted on its loans.
In its results presentation Suzlon confirmed lenders are in the process of extending the period for the Intercreditor Agreement (ICA) under the Reserve Bank of India’s ‘Prudential Framework for resolution of stressed assets’ directive, 2019, which expired on 7 January 2020.
Lenders are seeking to extend the period under the ICA until 30 April 2020, according to Suzlon.
The manufacturer has submitted restructuring plan to achieve a sustainable debt levels, which is under consideration by the lenders.
Suzlon said it is also in discussion with foreign currency convertible bond (FCCB) holders for settlement of FCCB borrowing which includes a waiver of “considerable amount”.