May 25, 2012 / 2:55 PM / 6 years ago

UPDATE 1-India's Suzlon eyes up to $200 mln from asset sales in FY13

* Reports loss for third consecutive year

* January-March quarterly loss at 3 billion rupees

* Confident of repaying bondholders this year - CFO (Adds quote, details, share price)

May 25 (Reuters) - India’s Suzlon Energy plans to raise $100 million to $200 million by selling some “non-critical” assets this fiscal year to pare its $2 billion debt, a senior official said, after the wind turbine maker posted loss for the third year in a row.

Suzlon, the world’s fifth largest wind turbine maker by cumulative installed capacity, has been under pressure for the last few years as global turbine sales slowed and its huge borrowings for expansion started denting its balance sheet.

The company needs to repay $360 million of foreign currency convertible bonds maturing in June and $207 million due in October. It will have to redeem the bonds as their equity conversion prices are way above the current value.

Suzlon’s foreign currency bonds maturing this year have conversion prices of 76.68 rupees and 97.26 rupees per share, well above the current price of 20.85, making them unattractive for bondholders to convert into shares.

The company is confident of repaying its bondholders, said Kirti Vagadia, chief financial officer of Suzlon, a dding, it was in talks with banks to raise up to $300 million to pay the June tranche of the dollar bonds.

Suzlon will explore other options including selling some of its non-strategic assets to pay the October tranche, he told Reuters by phone on Friday.

“We continue to work on a few fund-raising initiatives - which are our internal accruals, non-critical asset sale and working capital release,” he said.

Suzlon, the owner of Germany-based REpower, posted a loss of 4.79 billion rupees in the last fiscal year ended on March 31.

January-March quarter loss was 3 billion rupees on sales of 68.15 billion rupees. Analysts were expecting a consolidated profit of 721 million rupees in the quarter, Thomson Reuters I/B/E/S showed.

The company guided for a 30 percent rise in sales in this fiscal year that started on April 1 to 270 billion rupees to 280 billion rupees and an operating margin of 6 percent.

“The way our pipeline discussions are going on with our potential customers, I see we have a very good opportunity so far the order flow is concerned,” said Vagadia.

Suzlon has an order backlog of 415 billion rupees. (Reporting by Sanjeev Choudhary in NEW DELHI and Sumeet Chatterjee in MUMBAI; editing by Malini Menon)

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