Fri Nov 01 12:40:00 UTC 2024: ## Suzlon Energy Shares Rise on Strong Q2 Earnings, but Miss Execution Targets
**Mumbai, India** – Shares of Suzlon Energy, India’s largest wind turbine manufacturer, surged in early trading on October 29 following the release of its strong Q2FY25 earnings results. The company reported a 96% jump in net profit to Rs 201 crore, driven by record order wins and robust margins.
Revenue for the quarter rose 48% to Rs 2,093 crore, while EBITDA increased by 31% to Rs 294 crore. The company’s order book reached an all-time high of 5.1 GW, including India’s largest wind order from NTPC.
However, Suzlon Energy’s Q2FY25 execution came in slightly below expectations, with only 254 MW installed compared to Nuvama Institutional Equities’ estimate of 275 MW. This shortfall was attributed to the impact of heavy monsoon rains.
Operating margins also fell to 14%, lower than the estimated 16%, due to new costs associated with employee stock ownership plans, SAP implementation, and other one-off expenses. This led to a 30% miss on the company’s profit after tax (PAT) target.
Despite these challenges, Suzlon Energy’s robust order inflow, particularly in the commercial and industrial sectors, provides strong revenue visibility. The company maintains a dominant market share, benefiting from a duopolistic market in EPC capabilities.
Nuvama Institutional Equities maintained its ‘hold’ call on Suzlon Energy with a price target of Rs 67 per share.
This news article summarizes the key points of Suzlon Energy’s Q2FY25 earnings report, highlighting the company’s strong financial performance, its miss on execution targets, and the positive outlook based on its large order book. It also includes expert commentary from Nuvama Institutional Equities, offering investors a comprehensive view of the company’s current position.
First Piper 