Home BusinessREpower's H1 net profit rises 21.5%
REpower, the German subsidiary of Suzlon Energy, has posted a 21.5 per cent increase in net profit at ¤17.5 million (Rs 121.9 crore) for the first half of 2009-10, from ¤14.4 million (Rs 100.3 crore) in the previous year, thanks to its healthy order book position.
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Sales also increased 14.8 per cent year-on-year for the half-year period from ¤529.8 million (Rs 3,691.7 crore) to ¤609.7 million (Rs 4,239.3 crore).
REpower’s parent Suzlon, which had to rectify rotor blades of its entire V2 type S88–2.1 Mw turbine fleet due to manufacturing defects, had posted Rs 355.5 crore losses for the third quarter ended September, as against a loss of Rs 22.8 crore in the previous year’s corresponding quarter.
For the first six months of the current financial year, Suzlon’s losses were Rs 808 crore. Consolidated revenues for the quarter had also shrunk by 44.4 per cent to Rs 4,793 crore, as against Rs 6,921 crore in the corresponding previous year’s quarter.
REpower said the company sticks to its earlier expectation of a sales volume of ¤1.4 billion, as well as profit margin of 7.5 percent for the entire year 2009-10.
“The executive board is keeping to these targets but emphasizes that uncertainty with regard to the achievement of these objectives has risen strongly due to an increasing amount of project postponements on the customer side in the second quarter. Further, the expected recovery of the US wind market, which was anticipated by the market participants in the course of 2009, has up to now failed to materialize,” said a press release.