Suzlon Energy Ltd. (SUEL), Asia’s biggest wind-turbine maker, said its business is recovering sufficiently to meet loan repayments that began this month after a two-year debt holiday ended. The Pune, India-based company’s net loss narrowed to 6.56 billion rupees ($107 million) in the three months through September from 7.82 billion rupees the previous year, according to an e-mailed statement today. Operations are improving and revenues are expected to increase in the second half, said Kirti Vagadia, group head of finance.
Suzlon, which suffered India’s biggest convertible-bond default in 2012, is seeking to emerge from a debt reorganization program by the end of the fiscal year. As part of a $1.8 billion restructuring, domestic lenders had agreed to a two-year moratorium on loan repayments that has now ended, Vagadia said. Interest dues, which were being converted into equity, will now have to be paid in monthly cash payments of about 500 million rupees, Vagadia said. Principal repayments will be spread over 10 years and start off small, he said.
India last month officially reinstated a wind-farm tax benefit that was first announced in July. The effect of that policy change will start to become visible in orders later this year, Vagadia said. The company has already received about 150 megawatts of new orders linked to the restored incentive, according to an investor presentation today.Suzlon reported a 12 percent increase in revenue to 53.8 billion rupees. Finance costs rose 8 percent to 5.23 billion rupees.
Hilton Metal Forging Ltd yesterday closed in the green at Rs.19.70, after making an intra-day high of Rs.20.15. This is one of the cheapest stocks in the sector in which it performs. A decent P/E re-rating can take the scrip to around Rs.31-32, in the coming months.
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