Suzlon shares tank as quarterly loss rises 4-fold
Chennai:The stock of wind power major Suzlon Energy crashed 9.6 per cent at 11 am on Friday after the company posted a consolidated net loss of Rs 1,154.53 crore for the quarter ended December 31, 2012. The net loss increased four-fold as compared to net loss of Rs 2,86.46 reported during the corresponding quarter last year.
In early deals, the stock tumbled to a low of Rs 19.75. The consolidated total income dropped about 20 per cent to Rs 4,074.1 crore from Rs 5,063.41 crore during the same period. According to market participants, the numbers were below market expectations. Suzlon posted a consolidated forex loss of Rs 47 crore during the quarter as against loss of Rs 34.3 crore in the corresponding quarter of the last fiscal.
In another announcement, the company said the board has decided to close its Rotor Blade and Control Panel manufacturing units at Puducherry (Pondicherry). The decision follows challenges on the industrial relations front coupled with logistical issues faced by the facility in handling multi-MW wind turbine components of increasing size and the current financial position of the company.
This, however, does not include the Nacelle unit at the same facility, which could see utilisation as a service centre. This would also help the company in reduction of operational expenditure and working capital intensity as well as rationalise capacity in the company's supply chain, it informed the exchanges.