New Delhi: India’s biggest maker of wind-turbine generators, Suzlon Energy Ltd, declined the most in over six months on the Bombay Stock Exchange on Tuesday after posting a wider loss than analysts estimated as equipment orders slowed.

Suzlon fell 13%, the most since 16 April, to Rs58.25. The shares had their longest losing streak since the 10 days ended 10 October 2008. The benchmark Sensex declined 3.1%.

Suzlon bought Hansen in March 2006 as a strategic asset, when the wind energy industry in Europe was in trouble. In March 2006, Suzlon’s Netherlands subsidiary AE-Rotor Holding BV had acquired Hansen, one of the world’s largest wind energy and industrial gearbox manufacturers, for $565 million or close to Rs 2,500 crore in an all-cash deal. After the takeover, Hansen, founded in 1923, was expanded with new manufacturing facilities in Belgium, India and China with an investment of Euros 950 million (over Rs 5,500 crore).

 

 

At 13%, Suzlon shares fall most since April

Orders, including those from India, may improve in the coming months after being delayed by the global recession, chief operating officer Sumant Sinha said in an interview. The company is currently refinancing borrowings, which stand at Rs13,700 crore, he said.

“If the company is able to refinance its debt, it will be a positive for the stock,” Bhargav Buddhadev, an analyst at Noble Group who has a “positive” rating on the stock, said over phone from Mumbai. “We feel that the worst is over for the company.”

http://www.suzlon.com/

COMPANY PROFILE

Conceived in 1995 with just 20 people, Suzlon is now a leading wind power company with:

  • Over 14,000 people in 21 countries
  • Operations across the Americas, Asia, Australia and Europe
  • Fully integrated supply chain with manufacturing facilities in three continents
  • Sophisticated R&D capabilities in Denmark, Germany, India and TheNetherlands

  • Market leader in Asia and 3rd largest wind turbine manufacturer in the world, Suzlon Market Share (Combined with REpower) rose to 12.3% thereby making Suzlon 3rd

IT’S BLOWING IN THE WIND

* The company aims to raise about $1 billion from the sale of a 61.28 per cent stake

* It is evaluating four proposals and the deal could be concluded within a month or two

* Denmark-based Vestas and a Belgium-based consortium of major wind component makers are the frontrunners for Hansen

* Sources said the divesture of Hansen would not affect the gearbox requirements of Suzlon

* One of the main aspects of the discussions includes continuation of Hansen as a supplier of gearboxes for Suzlon

* Suzlon bought Hansen in March 2006 as a strategic asset, when the wind energy industry in Europe was in trouble

BSE: 532667 | NSE: SUZLON

BSE
NSE

Open
59.00
60.55

Day High
60.90
61.30

Day Low
53.80
53.80

Previous Close
58.25
58.25

52-Week high
146.00
145.70

52-Week low
33.00
33.05

P/E
0.00
0.00

Market Cap (Rs cr)
8585.2
8585.2

Volume
32715348.00
92646333.00