Suzlon recorded a loss of RS264 crores (€31m) in earnings before interest and tax (EBIT) in its fourth quarter and financial year 2020 (FY2020) results.
The turbine manufacturer recorded a loss of RS841 crores in EBIT in FY20.
Suzlon reported a loss of earnings before interest, tax, depreciation and amortisation (EBITDA) amounting to RS150 crores in Q4 FY20, an EBITDA margin of -23.2%.
In its annual results the company recorded EBITDA losses of RS423 crores for 2020, an EBITDA margin at -14.4%.
JP Chalasani resigned as the group chief executive of Suzlon, with effect from the 7 July 2020, during the company’s board meeting held on 6 July.
He will continue with the company as a strategic advisor.
Suzlon chief financial officer Swapnil Jain said: “In FY20 our debt restructuring and working capital constraints continued to impede our operations and that is reflected in our performance.
“Our losses at EBITDA level are primarily because the wind turbine generator business was almost at a standstill resulting in under-absorption of overheads and certain non-recurring costs.
“Having closed our debt restructuring successfully we have also reduced our fixed costs in FY20 thereby bringing down our break-even levels significantly.
“Post-restructuring we will have an improved balance sheet in FY21, equipping us to ramp up execution of our order book.”
In the last quarter Suzlon has closed its debt restructuring plan with unanimous approval by a consortium of lenders.
Chalasani said FY2020 has been a “highly challenging year” in India where the company installed 350MW “in spite of working capital constraints and the debt restructuring process”.
He added: “The market in now on a path to recovery and tenders from earlier auctions are yet to close.
“The company is very well positioned to take advantage of this opportunity post the debt restructuring.
“The Government’s thrust on ‘Make in India’ and becoming ‘ATMANIRBHAR’ will also help Suzlon’s growth as we would be able to manufacture wind turbines and components for the sector as a whole in the country and reduce imports.”