Suzlon Energy surges 15% in 3 sessions, up 979% in 3 years; should you buy?
Suzlon Energy have risen 15 percent in 3 consecutive sessions on the back of robust September quarter results, a strong order book, and healthy debt reduction. Just in today's session, the stock hit its 52-week high of ₹36.16, trading at its 5 percent upper circuit for the third straight session (November 2,3 and 6). The firm posted over 81 percent rise in the consolidated net profit to ₹102.29 crore for September quarter of 2023-24, mainly due to a decline in expenses.
Its net profit in the year-ago period was ₹56.47 crore, according to a BSE filing by the company. The numbers of Suzlon Energy remained positive despite an exceptional loss of ₹35 crore during the quarter ending September 2023. Its revenue, however, declined to ₹1,417 crore in Q2FY24 from ₹1,430 crore in the same period last year.
On the operating front, its earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 8 percent in the quarter under review to ₹224 crore compared to ₹207 crore in the previous year. The EBITDA margin also witnessed a significant increase, rising to 15.8% from 14.5% during the same quarter last fiscal. Total expenses also dipped to ₹1,291.26 crore from ₹1,427.84 crore.
"At the end of Q2 FY24, our order book stands at a healthy 1,613 MW. Our service business continues to do well, while our forging and foundry business SE Forge consolidated on its foundation for future growth," J P Chalasani, Chief Executive Officer, Suzlon Group, said. Himanshu Mody, Chief Financial Officer, Suzlon Group, stated, "The company was anchored strongly with a net cash of ₹599 crore by September 2023 which is a significant shift from net debt of ₹1,180 crore in March 2023.
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