Suzlon to raise Rs 1,000 cr from non-core asset sales in FY15
Jun 01 2014 , New Delhi
Besides, Suzlon is exploring new markets for business opportunities, according to a top company official.
"We continue to work on selling non-core assets. We expect to raise around Rs 1,000 crore through sale of non-crore assets this fiscal (2014-15)," Suzlon Group Head of Finance Kirti Vagadia told PTI.
The wind energy major has already mopped up more than Rs 700 crore by selling two non-core assets.
Suzlon realised about Rs 550 crore from the sale of US-based Big Sky wind farm and around Rs 173 crore by offloading stake in a Chinese manufacturing facility.
For the current fiscal, the company would mainly focus on ramping up volumes, boosting business efficiency and optimising capital structure.
Noting that the "future looks bright" for the company, Vagadia said he expects good revenues in the current fiscal.
When asked about future business plans, Vagadia, without divulging specific details, said the company is "exploring new markets".
In signs that its restructuring efforts are reaping results, the company saw its consolidated net loss narrow to Rs 603.45 crore in the three months ended March 2014. The same stood at Rs 1,912.72 crore in the year-ago period.
During the latest January-March period, revenue jumped to Rs 6,645.05 crore -- the highest in eight quarters.
In comparable period, revenue stood at Rs 4,336.44 crore.
The fourth quarter results are "remarkable" and the performance was helped by leveraging favourable geographical and products mix as well as cost management, Vagadia said.
At the end of March this year, Suzlon Group's order book was worth about $7.2 billion.
While announcing the financial results late Friday, Suzlon Group Chairman Tulsi Tanti said that last fiscal it achieved significant progress by improving business efficiency.
"The group is now transiting from a restructuring mode to a growth phase given the opportunities due to strong industry outlook," he had said.
Last year, Suzlon had launched a Comprehensive Liability Management Programme. With the CDR (Corporate Debt Restructuring) implemented, overseas forex facility refinanced via largest and unique credit enhanced bonds issuance the programme has now reached its last leg, the company said on Friday.
"The bondholder's meeting is scheduled on July 9, 2014 to approve a restructuring proposal including cashless exchange into new bonds with five-year bullet maturity," it had said.