SUZLON ENERGY ANNUAL RESULTS INSIGHTS FY 2009-2010

SUZLON ENERGY ANNUAL RESULT INSIGHTS – FY 2009-2010
NET DEBT REDUCTION- FY 10
- Consolidated net debt as on 31st March 2010 - Rs. 9764 cr.
- Consolidated net debt as on 31st December 2009 - Rs. 10488 cr.
- Net consolidated debt reduced by Rs. 724 cr.
- Net debt of Suzlon Energy Wind as on 31st March 2010 – Rs.10153 cr.
- Net debts reduce by 17% a Rs.2036 cr Y-O-Y.
- HANSEN STAKE NOW AT 26.06%.
- REpower Systems AG stake now at 90.50% v/s 90.71% (due to further issuance of shares as ESOPs)
- RIGHTS ISSUE ANNOUNCED.

SALES FIGURES- FY 10
- India = Q4 FY10- 361 Mw; FY10 - 688 Mw v/s 749 Mw FY09.
- Internationally = Q4 FY10- 290 Mw; FY10- 773 Mw v/s 2041 Mw FY09.
- Total Mw Sales (Suzlon Wind) – Q4 FY10 - 650 Mw; FY10- 1460 Mw.

ORDER BOOK – FY 10
- As on 26th May 2010 – 1126 Mw.
- Order book value as on 26th May 2010 – Rs. 6174 cr.
- Average realisation of Order Book -
 INDIA – Rs. 5.48 cr/Mw.
 INTERNATIONAL – Rs. 5.50 cr/Mw.
 RE Power order book as on 31st March 2010 – Euro 2.1billion(US$2.6bn).

REVENUE - FY 10
- Suzlon Wind Business Revenue – Q4 FY10- Rs.4150 cr; FY10- Rs.9635 cr.
- Consolidated Revenue – Q4 FY10- Rs.6084 cr; FY10- Rs.20620 cr.
- Karnataka wind energy tariff Rs. 3.70/Kwh from Rs. 3.40.
- Gujarat wind energy tariff Rs. 3.56/Kwh from Rs. 3.50/Kwh.
- Global Market Share – Suzlon + RE power – 9.8%; GE wind – 18.6%; Vestas – 19.8%; Siemens – 6.9% as on 31st March 2010.

OTHER FINANCIAL DETAILS -
- Net operating working capital as on 31st March 2010 – Rs. 5103cr v/s Rs.6153 cr.
- Absolute reduction of working capital of Rs. 1050 cr from March 2009 levels.
- Acquition Loans – Rs.2083 cr.
- FCCBs – Rs.2151 cr.
- Capex &Working Capital & Other Loans – Rs.6284 cr.
- Gross External Debt – Rs.10519 cr.
- Loans from Promoter group – Rs.1175 cr.
- Cash Holdings – Rs.1541 cr.
- NET DEBT – Rs. 10153 cr.
- NET EXTERNAL DEBT – Rs.8973 cr.
- Gross Profit/Mw - 9m FY 2009-10 – Rs. 2.03 cr v/s Rs. 2.07 cr in 9m FY 08-09.

DEBT MANAGEMENT EXERCISE –
- DEBT REDUCTION –
- Refinanced acquisition loan of US$465m in Rupee-denomination from SBI.
- Rupee loan refinancing of Rs.10624 Crs done from SBI.
- Rs.6587 cr & trade credits facilities (non-fund based) of Rs.3037 Crs.
- Holiday of 2 years in principal repayments done.
- Issue of GDRs for USD 108 million (Q2 FY 2009-10).
- FCCBs restructuring by removal of covenants & reduced the conversion price to Rs.97.26/sh from Rs.359.68/sh at Rs.44.60/US$.
- Infusion of funds through FCCBs – US$ 90 million.
- Total number of Shares to be issued on conversion of FCCBs – 237152577. (a dilution of 15.23%)
- Infusion of funds by promoters – Rs.1175 Crs.

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.

RE Power FY10 net income up at Euro 57.9 mn (Rs.333.504 cr), But SUZLON's CFO QUITS

RE Power, a subsidiary of Suzlon Energy, has announced its financial year 2009-10 results.

It has reported net income of Euro 57.9 million (Rs.333.504 cr) as against Euro 51.9 million (Rs.298.944 cr) (YoY).

Sales rose 8.5% to Euro 1.3 billion (Rs.7488 cr) versus Euro 1.2 billion (Rs.6912 cr) (YoY).

Earning before interest and tax (EBIT) margin improved at 7.4% versus 6.3%. Order backlog rose 40% to Euro 2.1 billion (Rs.12096 cr) .

REPower Guidance -

-Management expects a 10-20% increase in the overall performance

-Sales guidance of approximately. Euro 1.5 to 1.6 billion (Rs.8640 - Rs.9216 cr)

-EBIT margins seen increasing to 7.5-8.5% .

BUT, Suzlon Energy Ltd's Chief Operating Officer Sumant Sinha has quited today.

Sinha was considered to have been responsible for the company’s recent refinancing of its overseas bonds. An official announcement may be made today, Sinha was previously with Aditya Birla Retail and the Son of fromer finance minister Mr. Yaswant Sinha.....With Sumant quiting future of Suzlon's debt restructuring seems to be in dark........Meanwhile waiting for the official declaration of Suzlons results......

Suzlon Energy's result on 29th May 2010. at 4.30pm Pune, (please notice the timing of post...reported much earlier than all...)

UPDATE : GRASIM IND SAMRUDDHI DEMERGER

Details as on 21-May-2010

Share price- Rs.2,452.95;

Market Cap- Rs.22,370.79 cr;

52 Week- H- Rs.2,988.00; L- Rs.2,005.55;

P/E- 10.24; EPS- Rs.238.26;

Book value – Rs.1,033.36; Industry P/E - 19.26

Dividend – Rs.30; Fv- Rs.10;

Total Share Issued- 9,16,83,571 shares;

Promoter’s holding- 2,33,81,176 shares; Promoter’s holding in %- 25.50%;

As known to everyone earlier in my previous post Grasim has 65% stake while Grasim's shareholders will have 35% direct stake in Samruddhi Cement. So Grasims share price should adjust for 35% of Samruddhi's business.

On MAY 26 2010 (ex- date) by Ultra Tech Cement closing price (May 25,2010) the merger ratio of 4:7 ie 4 Ultra Tech Cement for 7 Samruddhi Cements. based on 26th May 2010 wednesday's closing price Grasim's share price should adjust by Rs.543 (Ultra Tech share price Rs 950x 4/7).

Samruddhi is expected to be listed by June,2010 & be finally merged with Ultra Tech by July,2010 (merger effective July 01,2010). Samruddhi Cements has 26 crore shares with a Face value of Rs.5.00 , Book value of Rs. 250 , Grasim will transfer Rs.2100 crore debts to Samruddhi Cements

My previous post on this topic on GRASIM SAMRUDDHI DEMERGER MARCH 14,2010

INDIA's FIRST IDR: THANKS TO STANDARD CHARTERED BANK PLC.

STANDARD CHARTERED BANK PLC

Standard Chartered PLC (STAN: LN) Bloomberg is all set to be the first foreign company to list in India through an Indian Depository Receipts (IDR) issue. India is the most profitable unit after Hong Kong. StanChart as it is called in short will offer to sell 24 crore IDR’s through public issue on May 25th 2010.

The issue will be 10 IDR = 1 share of Standard Chartered Plc of US$ 0.50. Like Global Depository (GDR’s) & American Depository Shares (ADS’s), IDR are the derivative instrument with shares as the underlying asset, they allow foreign companies to raise money in India.

StanChart expects to raise $500-$750 million (Rs 2250-3375 Crs). Calculation shows that an issue price of Rs 105-115 per share. This will be Stan Chart’s 3rd listing after London & Hong Kong & its next stop is Shangai.

StanChart is in India from 1858 in Kolkata; here it has 94 branches across 37 cities with over 20 lakh customers. It wants to show its commitment towards India which contributes 12 % of its global revenues. StanChart’s Net Profit grew 30 % CAGR in last 3 yrs, while Profit before Tax grew by 38 %. Base on 2009 results, StanChart’s Price to Book = 2 times, much better than 2.5 times of SBI. P/E at 14.6 times v/s 15.7 of SBI & 29.4 of HDFC Bank. Price band will be announced by May 24th 2010 depending on the closing price of the shares listed in UK.