Suzlon Q2 net up 68% on high volumes; to split shares

Plans to list wholly owned Belgian unit Hansen on the LSE

MUMBAI: Suzlon Energy said on Tuesday it would split its shares and list a unit in London as it unveiled a quarterly profit jump of 68%, sending its stock up 14%.  

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.

Suzlon had orders worth Rs 16,330 crore on October 20, chairman Tulsi Tanti said. It sold 683 wind turbines in the September quarter, up 76% from a year earlier, with sales to Western countries leading the way, he said.

“Major volumes have come from the US and Europe,” Tanti said. “Our exposure in the euro currency is growing and we are seeing major expansion in Europe and Australia.”

Net profit for the September quarter rose to Rs 398 crore, from Rs 237 crore a year earlier, while income from operations jumped 74.5% to Rs 3,641 crore from Rs 2,087 crore. 

“Growth is mainly on high volumes and rupee appreciation is still a pressure,” said Tanti.
Suzlon said it would split each share into five to expand its shareholder base. “With the stock split we want to create more liquidity so that small investors can participate in our success,” Tanti said. 

Tanti said Suzlon's wholly owned unit in Belgium Hansen Transmissions International NV was considering offering shares to institutional investors and listing on the London Stock Exchange.