It's a serious question which the investors of the 5th largest Turbine Manufacturer are asking.
But it is a difficult question to give an Awnser. Though Suzlon increased it's revenue by 10% compared 1st quarter of 2011 to reach 4747 crores or $859million, it is in a deep financial crises. Also it makes things worse when we see that it reported a consolidated loss of Rs 849 crore in first quarter this year as against a profit of Rs 60.1 crores a year ago, thanks to low volumes, interest costs and foreign exchange losses.
To emerge from this glut, Suzlon are planning serious cost cutting initiatives. Suzlon are planning to reduce annual Opex and manpower cost by 20 per cent by the end of the year. This announcement provides a clear view on its cost cutting initiatives. Other major manufacturers are also laying off its employees on account of bleek market outlook for the wind sector as a whole.
Though wind sector will see record installations this year all thanks to wind PTC ending in US, 2013 is expected to be a dull year.
Recently Suzlon and other manufacturers had released low wind speed turbines, by which these manufacturers are planning to dig deep on installations in low wind speed areas.
But despite all these glut Suzlon is in high hopes that it would be able to meet growth guidance of 30% in the year 2013, all thanks to its order book worth Rs 39,700 crore($7.2 billion).
