Suzlon Energy is in trouble

Suzlon Energy is in trouble.

Wind turbine maker Suzlon Energy 's consolidated losses increase to Rs 1,212.06 cr during the March quarter due to a fall in income and provision for impairment of goodwill following sale. The company had reported a consolidated net loss of Rs 603.45 crore in the year-ago period, Suzlon Energy said in BSE filing. The company's consolidated total income during the quarter stood at Rs 4,926.38 crore, a decline of 25.8 percent from the comparable period. "The company has made provision for impairment of investment in standalone financial results and impairment of goodwill in consolidated financial results (out of impairment of goodwill, Rs 2,451 crore is on account of post acquisition profits) and the same has been disclosed under exceptional items," the company said in the filing. "We undertook various transformational steps such as Senvion sale and equity infusion to deleverage and embark on a growth trajectory. The board has further approved Suzlon's venture into solar space," Suzlon Group Chairman Tulsi Tanti said in a statement. For the year ended March 2015, the company's consolidated net loss widened to Rs 9,157.69 crore. For year ended March 2014, the company's consolidated net loss was at Rs 3,519.97 crore. The company further said its Board has given approval to embark further in the renewable sector by venturing into the solar space. "Our results for FY15 were largely impacted by working capital challenges, which have now been addressed. Our business operations are now adequately funded with requisite working capital facilities to ramp up volumes," said Kirti Vagadia, Head of Finance, Suzlon Group. The company's consolidated order book was at 1.12 GW, worth about Rs 6,886 crore. It further said that it has completed the sale of Senvion for "l billion euro and the proceeds to be primarily utilized towards debt reduction." "Senvion to give Suzlon licence for off-shore technologies for the Indian market, while Suzlon to give Senvion the S111-2.1 MW license for the USA market," the statement added.