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Sunday, May 30, 2010

Suzlon's CFO Sumant Sinha quits to start his own advisory firm: ET reports

As I had reported in my previous post about Suzlon's CFO quiting and reasons not known, (ET confirms the news) but now he gives reason...
Sumant Sinha, has decided to step down from the position witheffect from 1st June 2010, he will pursue his own entrepreneurial interest and sets up his own financial advisory consultancy.
His first Signed - up client is SUZLON ENERGY LTD, to provide high level strategic advice and counsel to the board and managment team.
"I want to persue my own enterpreneurial path for sometime now and financial advisory firm allows me to launch off on my own and deeper dive in many interesting areas", Sinha said.
"I look forward to my continued association with Suzlon and I am delighted that it will be my first client," he added.
Suzlon's chairman, Tulsi Tanti, said that "Sinha's contribution in buliding relationships with important stake holders has been very valueable in getting Suzlon back on track where it is now well-positioned to ride through the current turbulance in the global environment and to rediscover success once again"

Mean while Suzlon's results was out as expected not good, giving Sales down by 28% at Rs.6160 cr, and Net Loss of Rs.188 cr vs Net Profit of Rs.315 cr. Group Revenue at Rs.20620 cr ($4.3 bn) for year FY09-10.
NET DEBTS as on 31st March 2010 down to Rs.10153 crs v/s Rs.12189 cr. Consolidated Net Debt Rs.9764 crs.
Company approves Rights issue of face value Rs.2 to its existing equity shareholders.



    Suzlon Energy Ltd. - chief financial officer quit as widening losses at India’s biggest wind-turbine maker jeopardize its ability to meet debt repayments this year.

    Robin Banerjee, appointed CFO in March 2009, left to take up an undisclosed position and Head of Corporate Finance Kirti Vagadia will assume his responsibilities, Suzlon said today in an e-mailed statement. The shares fell to a one-month low.
    Suzlon joins Vestas Wind Systems A/S (VWS), the world’s largest turbine maker, in losing top managers as increased competition from Chinese rivals squeezes profits and dwindling clean-energy subsidies threaten demand. Vestas CFO Henrik Norremark resigned last month after the Danish company reported a loss four times wider than analyst estimates.
    Losses at Suzlon grew to 2.86 billion rupees ($60 million) in the three months through December, the most in five quarters. That prompted the company’s auditors to examine its ability to raise funds as it seeks to meet debt repayments this year.
    Suzlon’s repayments may fall short by as much as $592 million out of $700 million in debt due in 12 months, Charanjit Singh, a Bangalore-based analyst at HSBC Bank Plc, said this week. The company may face $389 million in bond redemptions this year if investors holding convertible notes choose not to swap them for shares.
    Suzlon fell as much as 4.6 percent to 24.9 rupees in Mumbai trading, the lowest intraday price since Feb. 28. The stock was at 25.25 rupees as of 1:30 p.m. local time. The BSE Sensitive Index rose 1.7 percent.


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