Suzlon Energy Shares Surge to New High After Impressive Q1 FY25 Results
News Mania Desk/Agnibeena Ghosh/23rd July 2024
Shares of Suzlon Energy soared to their upper circuit limit on Tuesday, achieving a new 52-week high, following the company’s announcement of its robust financial performance for the first quarter of the fiscal year 2025. The renewable energy giant revealed its earnings for Q1 FY25 after the market closed on Monday, significantly boosting investor confidence.
For the quarter ending June 30, 2024, Suzlon Energy reported an impressive net profit of ₹302 crore, marking a dramatic increase of over 200% from ₹101 crore in the same period last year. This remarkable profit surge underscores the company’s strong operational performance and strategic growth in the wind energy sector.
Suzlon’s revenue from operations for the quarter reached ₹2,016 crore, reflecting a substantial 50% year-on-year increase from ₹1,348 crore reported in the previous year’s quarter. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a significant rise, climbing nearly 86% to ₹370 crore from ₹199 crore in Q1 FY24. This increase in EBITDA resulted in a sharp growth in EBITDA margins, which improved to 18.4% from 14.8% in the previous year.
The company’s balance sheet remains robust, with a net cash position of approximately ₹120 crore, further enhancing its financial stability. Following these positive earnings, Suzlon Energy’s stock price surged by 5%, hitting ₹57.82 per share, which is the upper circuit limit and a new 52-week high. The company’s total market capitalization exceeded the ₹78,000 crore mark, demonstrating strong market confidence.
Morgan Stanley has expressed a bullish outlook on Suzlon Energy, maintaining an ‘overweight’ rating on the stock with a target price of ₹58.5 per share. The global brokerage firm highlighted that Suzlon’s earnings for the quarter significantly exceeded expectations, with total deliveries amounting to 274 megawatts (MW), surpassing the estimated 250 MW.
During the April-June quarter, Suzlon achieved several notable milestones, including its highest Q1 deliveries in seven years and the highest quarterly EBITDA in the same period. The company also reported its largest-ever order book, with a total of 3.8 gigawatts (GW), further solidifying its position as a leading player in the renewable energy sector.
Suzlon Energy, headquartered in Pune, is a major global provider of wind energy solutions, boasting a total installed wind energy capacity of 20.8 GW across 17 countries. The company operates as a vertically integrated organization, with in-house research and development centers located in Germany, the Netherlands, Denmark, and India.
The strong financial performance and strategic advancements of Suzlon Energy reflect its growing influence and success in the renewable energy market, contributing to its substantial stock price appreciation and favorable investor sentiment.
