Suzlon is among the world's leading renewable energy solutions provider that is revolutionizing and redefining the way sustainable energy sources are harnessed across the world. Presence in 17 countries across Asia, Australia, Europe, Africa and the Americas, Suzlon is powering a greener tomorrow with its strong competencies in renewable energy systems. Suzlon’s extensive range of robust and reliable products backed by its cutting-edge R&D and more than two decades of expertise are designed to ensure optimum performance, higher yields and maximum return on investment for the customers. 

Suzlon's’ Business 

• Suzlon operates in green or renewable energy sector with its focus on wind energy where it has strong presence since 1995. 
• Till date Suzlon has installed 12,780 wind turbines, with total capacity of 20,120+ MW.
• Suzlon has 14 manufacturing facilities in India and 8 R&D units located in India, Germany, Denmark and Netherlands.
• Company has 9 different wind turbines in their product portfolio which comes with different height and rotor diameter. With their first one being S52 – height of 75m and rotor diameter at 52m and their latest is S144 – height up to 160m and rotor diameter of 144m. For reference – Higher rotor + Higher hub height = Higher energy yield.
• Suzlon also provides service and maintenance of wind turbines and this service is not limited to their products.

Positive Industry Outlook 

• India holds the fourth position in the world for Renewable energy installed capacity. India has an ambition of installing 500GW of non-fossil fuel capacity by 2030 and achieving net zero emission by 2070.
• For achieving this ambition Indian government has allowed 100?I in this sector and has announced its intent to invite bids for 50GW of renewable energy capacity annually till 2028. 
• Today India has overall renewable energy capacity of 173.6 GW out of which 42.8 is wind energy accounting for 24.6%.
• By 2030 India has a target of 100GW of wind energy out of its overall target of 500GW which then will account for 20% of total capacity. 
• Out of its annual bids of 50GW Indian intents to get bids of 10GW for wind energy which can breach target of 100GW by 2030.

Strong Growth Plans

• Suzlon is putting constant focus on development of new technology through their world class R&D facilities.
• The goal is to reduce Levelized Cost of Energy, enhancing efficiency and maximizing output.
• Company is expecting annual wind capacity to increase by 3.5GW and 4.5GW in India in years 2024 & 2025 respectively, given its current market share of 33% Suzlon will have a strong demand.
• Suzlon has a strong order book of 1613MW and is continuously growing.

Key Performance Indicators for Suzlon

• Solid Volume Growth - 

• Captured 1/3 Market Share – 

• Globally Diversified Installations – (in MW)

Financial Performance 

• Revenue – Suzlon has reported incredible growth in their revenue compared to 2020 company has reported more than double revenue in last financial year.

• EBITDA – From a negative EBITDA in 2020 to 839 crore EBITDA in 2023 shows the operational improvements in company.

• PAT – Suzlon has reported a positive bottom line after many years, it is a complete turnaround for company.

• Net Debt – From considered as a company stuck in a debt trap to now Suzlon has a healthy Liability side on balance sheet with debts been reduced to 1100 Crores from 13000 Crores.

• Interest Coverage – Suzlon now can pay off their annual interest expenses twice with their income. Earlier with negative EBITDA they were not even able to make basic payments.

• ROCE – Company has almost doubled their ROCE in last two years.

Share Holding Pattern – No Major changes in shareholding of promoters and FII. Whereas a big drop in DII stake.

1. SWOT Analysis 

• Strengths - Effectively using Shareholders fund - Return on equity (ROE) improving since last 2 year
• Company holds 1/3 market share in its segment.
• Strong order book value.
• Growth in quarterly net profit with increasing profit margin.

• Weakness - MFs decreased their shareholding.
• Declining net cashflow – company not able to generate net cash.
• Rich Valuation.

• Oppurtunity – High Growth in industry.
• Company has strong R&D to facilitate future growth in renewable energy sector.
• Governments’ plan to increase renewable energy consumption.

• Threats – Technological risk as to make wind energy cost effective technology is changing very fast.
• High Level of inflation in India.
• Delay in funding for planned expenditure.

Conclusion 

• Suzlon is one of the company which is the in the right industry at right point of time and is on right track.
• Company has overcame its issue of excessive debts through refinancing and right issues.
• Industry outlook looks great and Suzlon has a fair share of market also.
• It has improved profitability over years and reduced its financing cost significantly. 

• Though valuation parameters such as PE stands at 154 against the industry average of 42 but recent operational and financial improvements in company justifies that and many company remains in overpriced zone for a long period of time.

  Note – Some parts of data reflected in report is taken from following sources – 

• Annual Reports
• Investor Presentation – Suzlon

• Company website

  - Team Icore