Suzlon Energy Q1 Results Review - A Strong Start To FY25: ICICI Securities

ICICI Securities Report

Suzlon Energy Ltd. has reported an all-round beat in Q1 FY25 with wind turbine generators volume of 274 megawatt (up 2 times YoY). Revenue grew 50% YoY to Rs 20 billion and Ebitda grew 85% YoY to Rs 3.7 billion led by-

1. sharp improvement in WTG Ebit margin to 8% (versus 0.7% YoY), and

2. Operation and maintenance Ebit margin of 40% (versus 27% YoY).

Note that last year operation and maintenance margin was impacted by one-off provision of Rs 500 million.

Order inflow has remained healthy at 1.2 gigawatt in Q1, taking the orderbook to 3.8 GW as of June 2024.

Moreover, order inflow outlook remains strong as hybrid and wind renewable energy bidding has remained strong in FY24 and Q1 FY25.

We reduce the rating to 'Add' with target price of Rs 70/share.

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