Last Updated : 09 November 2009 at 12:15 IST

Suzlon takes halt, tanks 3% after a two-day rally

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MUMBAI (Commodity Online): Indian renewable energy major, Suzlon Energy Ltd (BOM: 532667) broke the upside rally as the stock fell on the third session, today after surging for over 20% in the past two trading session.

The company stocks fell by close to 3% at Rs.64.30 in the opening trading session on the Bombay Stock Exchange (BSE), giving a break to the two-day upside rally gaining over 20%.

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The stock hit a high of Rs.67.95 and a low of Rs.62.90 so far during the day. Company stocks jumped 20.12% to Rs.66.25 on 6 November 2009, from Rs.55.15 on 4 November 2009. The stock has underperformed the market over the past one month till 6 November 2009, falling 23.94% as compared to the Sensex’ 4.72% fall.

India's largest wind turbine maker, Suzlon reported a net loss of Rs.184.91 crore in Q2 September 2009 compared with a net profit of Rs.16.98 crore in Q2 September 2008. Sales fell 72.3% to Rs.616.02 crore in Q2 September 2009 over Q2 September 2008.

On a consolidated basis, the net loss widened to Rs.355.52 crore in Q2 September 2009 from Rs.22.84 crore in Q2 September 2008. Total income declined 30.85% to Rs.4855.47 crore in Q2 September 2009 over Q2 September 2008.

The company mentioned in a filing with the BSE that its order book as on 30 October 2009 stands at Rs.8,285 crore, which is 1.15 times its sales of Rs.7235.58 crore for the year ended March 2009, giving strong revenue visibility.

Suzlon's profit were hurt as the company got fewer orders this year because major economies are struggling with last year's financial crisis. Suzlon said its order book stood at 1,488 megawatts (MW), with 1,365 MW in international orders and 123 MW in domestic orders.

For the current fiscal year that end on March 2010, the company revised its full year guidance to a range of 1,900 MW to 2,100 megawatts.

Suzlon completed and commissioned a 19.5 MW wind farm project for Gujarat Mineral Development Corporation (GMDC) in Rajkot, Gujarat, during Q2 September 2009. The project comprises 13 units of Suzlon's 1.5 MW wind turbines and was commissioned in record time, it said.