Suzlon Energy reported its lowest quarterly profit in a year as India’s support for auction mechanism to build wind energy projects slowed orders.
The profit of 490.8 million rupees (Dh28.1m) during the usually quiet fiscal first quarter compared with a loss of 2.6 billion rupees in the year-ago period, according to a filing to the Indian stock exchange late Friday. The previous three quarters each provided profit over 2bn rupees.
India in February started the first auctions for wind-energy capacity, where developers bid against each other for contracts to build projects. That both brought down the cost of renewables and unsettled companies accustomed to more predictability on what price they would be paid under the earlier feed-in-tariff regime.
“The transition from feed-in-tariffs to competitive bidding has created temporary volatility in terms of volume and margins,” said the chief executive JP Chalasani .
The government’s shift in incentives comes at a delicate time for Suzlon, based in Pune, which has been struggling to exit a debt restructuring program after its 2012 default on US$209 million of dollar-denominated convertible bonds.
The company had planned to finished the program in March and then three months ago pushed that milestone back to September. A spokeswoman for the company said Friday that the restructuring would finish sometime in the current financial year.
Under the old subsidy system, all projects qualified to receive a fixed rate for their power. The new one is designed to give the government more control of the capacity built and the cost of each new contract.
“In order to cope with the temporary uncertainties in the domestic market we have further strengthened our risk management in order to maintain our margins,” Chief Financial Officer Kirti Vagadia said in the statement.
The company has 1,169 megawatts in orders, down from 1,205 megawatts a year ago. Of that, only about half is backed by power purchase agreements, the company said in its investor presentation.
Suzlon’s profit contrasts with a loss at rival Inox Wind. Siemens-Gamesa Renewable Energy also attributed a drop in its third-quarter revenue to the changes in India.
According to the ratings agency India Ratings and Research, there could be a substantial dip in wind capacity additions in the current financial year ending March 31. Installations could fall to 1 gigawatt to 1.5 gigawatts from an all time high of 5.4 gigawatts last financial year, the rating agency said in a recent note.
Suzlon’s long-term foreign currency debt stands at $698m, about the same as a year ago. Its rupee-term debt to be repaid over the next four years is at 28.59bn rupees.
Suzlon has 11 gigawatts of installed wind power capacity in India and a total of 17 gigawatts worldwide.
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
BUNDESLIGA FIXTURES
Friday (All UAE kick-off times)
Borussia Dortmund v Eintracht Frankfurt (11.30pm)
Saturday
Union Berlin v Bayer Leverkusen (6.30pm)
FA Augsburg v SC Freiburg (6.30pm)
RB Leipzig v Werder Bremen (6.30pm)
SC Paderborn v Hertha Berlin (6.30pm)
Hoffenheim v Wolfsburg (6.30pm)
Fortuna Dusseldorf v Borussia Monchengladbach (9.30pm)
Sunday
Cologne v Bayern Munich (6.30pm)
Mainz v FC Schalke (9pm)
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
