Share Trading Tips

The promoters of Suzlon Energy, recently, reported that members of the promoter group had together pledged 15.75 per cent stake in the windmill company. This is despite the turnaround announced by the company in the December 2009 quarter. The troubled wind turbine manufacturer reported a net profit of Rs 14 crore in December 09 against a net loss of Rs 65 crore in the corresponding period of the previous year. Revenues at Rs 5,590 crore were 19 per cent lower than the Rs 6,922 crore in the December 2008 quarter. The company announced that its debt has reduced to Rs 10,488 crore in December 2009 quarter, from the Rs 13,762 crore in the previous September quarter. Much of that reduction came from Suzlon’s stake sale of its Belgian subsidiary Hansen Transmission during the quarter, in which the former sold 35 per cent for $370 million. Additionally, the company took on fresh dollar- denominated refinance loan of $465 million from State Bank of India. As of January, the Pune-based company’s order book stood at 1,484 mw, valued Rs 8,128 crore. The company sold 327 mw in India in the nine months of FY10, and has a current order book position of 314mw for India. Whether it can sustain the improved performance remains to be seen.

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