Suzlon Energy Q4FY17 Concall Summary


 Financial highlights

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  • The FY17 saw 49% increase in delivery volumes to 1,682 MW, including 109 MW in solar.
  •  Suzlon witnesseda 98% increase in commissioning volume to 1,779 MW; revenues of Rs. 12,693 crores; 64% growth in EBITDA Pre-FX at Rs. 2,203 crores; and 17.4% EBITDA margins.
  • Wind volume are up 25% year-on-year and 20% quarter-on-quarter at 554 MW.Their gross margins of 34% and EBITDA margins at of pre-FX of 14.5%is in line with the Q4 of last year.
  • Net working capital remained tightly controlled at 12.8%, within their guidance levels.
  • Their net debt stands reduced by Rs. 341 crores to Rs. 9,920 crores: Rs. 128 crores was due to favourable currency movement and the balance of Rs. 213 crores was reduction through cash movements.
  • Service business continues to grow, reaching a revenue of Rs. 1,623 crorefrom external sales in FY17 comprising of 12.8% of revenues. Forging and foundry business clocked a top line of Rs. 491 crores in FY17, constituting about 4% of revenues.
  • The solar revenue booked in the quarter is 109 MWs worth Rs. 548 crores
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Operational highlights

  • Suzlon's market share has increased from 26% to 32%.
  • In terms of delivery, Suzlon achieved 1,682 MW in volumes, which comprises 1,573 MW in wind and 109 MW in solar in FY17. 
  • The company recorded all-time high installations in India, up 1,779 MW in FY17, which takes their cumulative installations to over 11 GW in India and over 17 GW globally.
  • Suzlon, on the domestic wind side, has a current order backlog of 1,331 MW. This includes 250 MW bid-based orders, the recent SECI bid-based order, while the rest 1,081 MW is FIT-based orders. All these orders have either signed PPAs or on the verge of getting signed
  • They have a solar backlog of 231 MW. Of the total 340 MW of signed solar PPAs, they have delivered 109 MW worth of equipment in FY17. The balance 231 MW will be delivered in FY18. That means, entire 340 MW will also be commissioned in FY18. This excludes the 175 MW, which the company won in the bid in Jharkhand where the PPA signing is still awaited. That is beyond this 340 MW
  • The company created additional capacityof 1,800 MW for new product of blade capacity.
  • They will not participate in any bidding in solar
  • In U.S. they have a unique position of having created a 500 MW pipeline of project that qualifies for 100% PTC benefit

Renewable Market 

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  • Availability of the cheaper and longer tenure debt and reduced IRR expectations of developers enables the commercial viability of even at the low tariff rates
  • The renewable sectors in India has grown 100% year-on-year for the last 2 years
  • Last year, India emerged as the third-largest renewable energy market in the world in terms of annual installations and the fourth largest in cumulative installations.
  • Last year, the renewable capacity addition exceeds the thermal capacity.
  • Wind installation attained as a new peak in the FY17 at 5.5 GW installation in a single year, which is a 61% growth over the last fiscal year
  • The company is confident that  India will exceed the 60GW target by 2022
  • Wind market in India is currently under the transition phase from FIT and incentive regime to the auction-based competitive market
  • The huge traction is also seen in the captive and PSU market, which is now, estimated 1 GW per annum. In addition, each bid, central bidding, provisions of the 10% capacity is allocated especially for PSU. With all 3 segment put together, industry is on the track become a 8-10 GW annual market from FY19
  • The company believes market should remain around 6 GW level in FY18, and their clear target is to achieve 40% market share in this current year.
  • It is the second consecutive year the company has achieved almost close to 100% growth rate in installations.
  • Indian market grew at 61% in FY17 to touch its all-time high figure of 5.5 GW. In FY17, while rest of the market grew at 48%, Suzlon grew by 98%. 


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  • The 9X product was launched in FY12 and thereafter, it ahs constantly innovated to bring out the turbine, which will reduce LCOE by incremental PLF increase at the reasonable cost increase.
  • The company’s state-of-art product S111-120 wind turbine generator achieved 42% plant-load factor in its first 12 months of operations in Gujarat.
  • This is the highest PLF registered by any renewable technology in India until date. The turbine model is designed to generate 20% more than S97-120 on the same site locations, thus enabling the lower LCOE.
  • Their next product under development is 12X, which has potential to further push down the LCOE by another 10%, and will be in the market by the next year
  • Project under the auctions, with much lower uncertainty on the tariff and PPA, is enjoying the lower cost of capital.
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