Synopsis: Suzlon Energy Ltd is set to reveal its financial results for Q2FY25 and H1FY25, ending September 30, 2024, on October 28, 2024. Analysts anticipate strong year-on-year (YoY) growth, bolstered by increased dispatches and effective execution strategies.
Q2FY25 Projections and Analyst Insights:
Brokerages have offered varied forecasts for Suzlon's performance.
Nuvama Institutional Equities projects Suzlon's revenue at Rs. 2,454 crore, marking a 73% YoY rise and 21% QoQ growth.
EBITDA is expected to increase 77% YoY to Rs. 398 crore.
Nuvama also forecasts core PAT to grow significantly, showing a 217% YoY and 7% QoQ increase, driven by improved execution and higher delivery rates reaching 300 MW, slightly above the previous quarter’s figure.
Conversely, JM Financial predicts more modest revenue growth, pegging it at Rs. 1,683 crore, a YoY increase of 18% but a sequential decline of 17%.
The EBITDA forecast stands at Rs. 271 crore, up 21% YoY but down 27% QoQ, which could lead to a 220 basis point contraction in EBITDA margins.
Net profit is expected to double YoY to Rs. 206 crore, but could decline by 32% QoQ due to weaker EBITDA performance.
JM Financial also notes that increased dispatches are likely to boost revenue, countering last year’s one-off loss from the sale of a subsidiary.
Anand Rathi Research expects even stronger results, projecting revenue at ₹2,776 crore, with a YoY increase of 95% and QoQ growth of 37.7%.
Adjusted PAT is forecast to rise by 175% YoY and 25% QoQ.
Anand Rathi also expects robust performance based on higher dispatch volumes (up 108% YoY) and improved operating leverage.
This positive outlook underpins its 'buy' recommendation with a target price of Rs. 76 per share, supported by strong revenue generation and profit expansion.
Market Reaction and Stock Performance:
Despite these optimistic projections, Suzlon Energy’s stock has shown volatility.
Shares dropped approximately 2% to ₹66.31 as of October 28, 2024, following a recent correction of 23% from its 52-week high of ₹86.04 recorded in September 2024.
This fluctuation reflects investor caution amid the projected sequential decline in margins, even as long-term growth prospects remain favourable.
In conclusion, Suzlon’s Q2FY25 results are anticipated to reflect strong YoY revenue and PAT growth.
While the company is projected to showcase improved delivery and operational efficiency, sequential challenges such as reduced EBITDA margins may temper quarter-on-quarter performance.
Brokerage firms retain cautious optimism, with most maintaining a 'buy' rating, highlighting Suzlon's potential in the renewable energy sector despite short-term fluctuations.
Disclaimer: This article is for informational purposes only and should not be taken as investment advice. Readers are encouraged to consult with a qualified financial advisor before making investment decisions.
