People are talking about SUZLON ENERGY's bankruptcy & that the company cant service its debt in time ...blah blah...blah...Now they know the difference between a good asset company & bad asset company and still they talk like this shame....
ANYWAYS...here's what I feel about Suzlon, agreed that it has the debts of Rs.9,252 cr & Reserves of Rs.5,892 Cr.(which can take care of losses).
As for the question on loans repayments then here's the answer –
Suzlon took loans for acquisition of Hansen & REpower a german base company. They sold some of the stake in Hansen but they eventually raised their stake in REpower by 14.4 % to current 90.50%.
Share holding Pattern of Click REPOWER AG -
| SUZLON | 90.50 % | 83,25,845.245 Shs |
| FREE FLOAT | 9.50 % | 8,73,983.755 Shs |
| TOTAL | 100 % | 91,99,829 Shs |
Current Market Price of REpower – 114.5 Euros/Sh (JAN 12 2011)(58.72/1Euro)
The Free float of REpower is 9.5% - 8,73,983.755 Shs = 100.07 m Euros, around Rs.587.62 Cr, According to German laws Suzlon has to buy the entire 9.5 % of REpower in order to integrate REpower’s assets into itself.
NOW , REpower has Total Asset of 1,032.62 m Euros; Shareholders Fund – 475.97 m Euros, EPS – 6.34 Euro/Sh; Dividend paid 1.54 Euro/sh; Total debt of 556.6 m Euros; Debt/Eq – 0.40. NP – 57.93 m Euros.
So, my friend SUZLON adds Rs.2794.89 Cr to its books by just paying Rs.587.62 Cr.Suzlon's debts of Rs.9,252; Reserves of Rs.8686.89 Cr (5,892 + 2794.89 of Repower); D/E ratio will be 1.05. NOT BAD..
The stake buy of REpower’s 9.5% will cost Rs.587.62 cr which is possible as Suzlon has recently completed its rights issue of Rs.1180 cr & has restructured its debts .. Off course this may take long time, say up to a year but fundamentals will improve once this REpower stake is bought..
NOW WHAT YOU THING ABOUT THISSSS
Here are some details of REPOWER AG - CLICK HERE
 | Fiscal 2009/10 (m Euros) | Fiscal 2008/09 (m Euros) |
|---|---|---|
| SALES | 1,303.5772 | 1,209.0907 |
| EBIT | 98.316 | 76.8988 |
| PBT | 83.85 | 76.5526 |
| NET PROFIT | 57.9303 | 51.9365 |
| Total Asset | 1,032.6242 | 928.3723 |
| Share Holders Equity | 475.9717 | 408.34 |
| Number of Shares (1 Euro) | 9199829 shs | 9177039 shs |
| EPS | 6.34 Euro | 5.75 Euro |
| Total Dividend | 14.44373153 | NIL |
| Opert. Cash flow | 119.3 | |
| TOTAL DEBT | 556.6 | |
| Net Working Capital | 195.6 | |
| Net W.Capital Ratio | 14.8 % | |
| Share holders fund | 464.498048 | |
| Minority Interest | 11.473691 | |
| Revaluation Reserve | 0.776 | |
| Retained Earnings | 147.707203 | |
| Cash | 211.719 |
My previous post on SUZLON CLICK - http://bhavikkshah.blogspot.com/2010/12/suzlon-on-restructuring-merges.html
HI BHAVIKK
ReplyDeleteNice post..good info....
I agree with your views...
Here is one article I hope you and urs readers
would like it. click here - http://www.indianexpress.com/news/suzlon-is-a-good-buy-but-comes-with-risks/736739/
HI BHAVIKK
ReplyDeleteNICE article keep it up...
You may like this article also click this link
http://www.seasonalmagazine.com/2011/01/suzlon-power-stock-to-bet-on-in-2011.html
HI BHAVIKK
ReplyDeleteHERE IS WHAT INDIAN COURT HAVE RULED FOR SUZLON
http://www.business-standard.com/india/news/suzlon-unit-can-find-new-turbine-partner-says-court/423923/
The economic collapse of Japan has begun. The extent of the devastation is now becoming clear and many are now projecting that this will be the most exp...
ReplyDeleteBankruptcy
HI Reader Friends !!!
ReplyDeleteREpower's Result updates -
The REpower Systems Group, a subsidiary of Suzlon Energy has achieved total performance of Euro 1.28 billion in FY11 as against Euro 1.33 billion in FY10, reflecting marginal fall of 3.75%. Net income for the year, at Euro 55.6 million, was only slightly down by 3.97% on the previous year`s level of Euro 57.9 million.
Revenues dropped from Euro 1.30 billion to Euro 1.22 billion. At Euro 86.0 million, EBIT was down 12.5% on the previous year (Euro 98.3 million). The EBIT margin shrank accordingly from 7.4% to 6.7%. After financing expenses and income, earnings before tax for the 2010-11 fiscal year amounted to Euro 80.9 million as against previous year`s Euro 83.9 million.
Overall, in the yera the 2010- 2011 REpower Systems AG Installed or supplied output amounted to 851 megawatts (previous year: 863 megawatts), of which more than 77% was destined for export. Incoming orders in the period under review came to 1,252 megawatts, which equates to a volume of EURO 1.36 billion.
The Executive Board and Supervisory Board will propose to the AGM,likely to be held on Aug. 30, 2011, that a dividend of Euro 1.50 (previous year: Euro 1.57) is resolved for the 2010-11 fiscal year.
An initial measure to improve efficiency is the production of REpower 2 megawatts series wind turbines at a site in Padubidri, India. The MM wind turbines produced there are to be exported to Australia and North America.
HI READERS,
ReplyDeleteGood News for SUZLON ,
Persuant to section 15 of WpHG of German law, the majority shareholder of REpower Systems SE (ISIN DE0006177033, WKN 617703), AE-Rotor Holding B.V., Amsterdam (Netherlands), a subsidiary of Suzlon Energy Ltd.informed the Executive Board of REpower Systems SE that it has set the cash compensation for the transfer of the shares from the minority shareholders of REpower Systems SE to AE-Rotor Holding B.V. at 142.77 EUR per no-par value share in compliance with § 327a German Stock Corporation Act (Aktiengesetz) (squeeze out). A resolution on the squeeze out shall be passed in the annual general meeting of REpower Systems SE. The annual general meeting will not take place on August 30, 2011 as previously announced but has been postponed to September 21, 2011 due to conflicting schedules. Suzlon to utilise 63 million Euros for this.
AT LAST SUZLON WILL BREATH A FRESH AIR.....
HELLO READER FRIENDS !!!
ReplyDeleteAn Important updated from Suzlon -
Suzlon Energy will sell its 26.06 % equity interest in Hansen Transmissions International NV, Belgium to ZF International, its joint venture partner. The offer is to buy the 100 % in Hansen for 445 million pounds. ZF and Hansen have offered a premium of approximately 95.6 %, over the closing price of 33.75 pence per Hansen share on 22 July 2011.
In November 2010, Suzlon had sold 35.2 % of Hansen for $361 million, bringing down its shareholding to 26 %. This offer is an strategy to optimize and strengthen Suzlon's balance sheet.
Ted Connolly is a lawyer in the Boston office of a large, international law firm, where he concentrates his legal practice in bankruptcy and finance law.
ReplyDeletetennessee bankruptcy
HELLO FRIENDS,
ReplyDeleteThe government of India has ended a tax break for wind farms, which helped to drive 70% of installation last year in worlds third largest market for turbines.
From 1st April 2012 wind power projects can no longer claim accelerated depreciation at the of 80 % on the cost of their equipment. Accelerated depreciation is an accounting method that allows wind farm developers to write off investments at a faster rate. Projects built after 31st MARCH 2012 can only claim the standard depreciation rate of 15 %. Axing the tax incentive could cause demand for turbines in India to go down by 15 % this financial year.
Bhavik. You still think Suzlon is going to set sail Northward? Anytime soon?
ReplyDeleteThanks for sharing your insights. Helps greatly.