Orders power up Suzlon profits

India's Suzlon Energy Ltd, the world's No 4 wind turbine maker, said yesterday its standalone quarterly net profit nearly doubled as it won more orders, helping its shares rise nearly 8 percent.

The company said it had orders worth 171.07 billion rupees ($4.3 billion), including 147.03 billion rupees from overseas, on Jan 25.

Suzlon, which raised $590 million from the listing of its Belgian unit Hansen Transmissions International on the London Stock Exchange in October, said its standalone net profit rose to 3.38 billion rupees ($85.8 million) compared to 1.76 billion a year ago.

Consolidated net profit after minority interests fell 11.5 percent to 1.52 billion rupees from 1.74 billion rupees.

Producers of renewable energy equipment such as Suzlon are riding a boom as oil prices hit record highs and climate change concerns prompt countries to tighten policies to fight increasing greenhouse gas emissions.

The strength of the rupee has been a challenge for Suzlon, which won control of Germany's REpower in 2007 and depends heavily on export orders.

The rupee gained 1.1 percent against the dollar in October-December quarter and more than 12 percent in 2007.

Suzlon owns manufacturing facilities for components like rotor blades, generators, control systems and towers in India and in the United States.

Suzlon's shares rose as much as 7.9 percent to 339.70 rupees yesterday and were up 6.1 percent at 0541 GMT, when the benchmark index of the Bombay Stock Exchange was up 0.9 percent.

During the quarter, its shares rose nearly 34 percent, outperforming the 17 percent rise in the benchmark index.

Agencies

(China Daily 01/30/2008 page17)