Suzlon Energy elated on Brazilian order

Suzlon Energy elated on Brazilian order. Suzlon Energy climbed 5.43% to Rs 1,365.25, on receiving orders for 225 Mw wind turbines from a Brazilian firm. As many as 1.66 lakh shares were traded on the BSE.

The stock had spurted during late June 2006 - early July 2006 – to Rs 1,137.20 on 5 July from a low of Rs 814.65 on 26 June. However, the rally soon fizzled out and the scrip slipped to Rs 921.85 by 19 July, from Rs 1,137.20 on 5 July. It recovered once again, to Rs 1,240.10 by 11 August. Here, the scrip slipped to Rs 1,128.50 by 12 September 2006, only to rise to Rs 1,294.95 by 12 October 2006.

At the current market price of Rs 1,365.25, Suzlon Energy trades at 47.73 times its FY 2006 EPS of Rs 28.60.

Suzlon Energy's Denmark unit has finalized an agreement with SIIF Energies do Brasil (SIIF) to supply 225 Mw wind turbines. The product will be delivered in the first quarter of 2007, with the installation and commissioning to be completed in 18 months.

The current consolidated order-book position of the company stands at Rs 5,777 crores, which includes Rs 4,977 crore worth of international orders and Rs 800 crore contracts from the domestic market.

Recently, Suzlon Energy finalized an agreement with John Deere Wind Energy to supply 247 Mw wind turbines, the delivery of which will take place throughout 2007.

In September, Suzlon Energy set up a 600 kw capacity windmill for Vimal group in Gujarat, and signed a 105 Mw deal with Edison Mission Group for providing wind turbines, the delivery of which is expected to begin by mid-2007.

In August, Suzlon Energy's Danish subsidiary also had orders for supplying 29 wind turbines to Italian and Portuguese firms. The company said it will supply 10 units of the 2.1-Megawatt turbine to Italy's Maestrale Green Energy, and 19 units with the same capacity to Portugal's Tecnologias Energeticas, SA.

Earlier in August, Suzlon Energy announced its plan of investing Rs 1,400 crore in 2006-07, across three plants in India. The company plans to raise its wind turbine manufacturing capacity to 4,200 Megawatt from the current 3,300 Megawatt, this fiscal.

Suzlon will invest Rs 750 crore in a new integrated turbine manufacturing facility near Mangalore, which will increase the company's turbine capacity by 1,500 Megawatt. The plant, which is coming up in the special economic zone, will be an export-oriented unit and will aid the company's proposed forays into US, China, Australia and Europe.

The plant is expected to become operational in June 2007.

Suzlon Energy had, in May, fully integrated its WTG manufacturer unit after an acquisition of Hansen Transmission, the world's second largest windmill gearbox manufacturer, for $ 538 million.

Meanwhile, the recently established facilities in the world's fastest growing markets, US and China, will help it to increase market share.

Recently, Suzlon Energy (Tianjin), the step-down subsidiary of the company, and P R China signed a contract with Datang International for 32 units of 1.25 Mw wind turbine generators, which will be installed at the Zhuozi Wind Farm.

In June, Suzlon Energy shareholders cleared a special resolution enabling it to raise up to Rs 5,000 crore through a combination of equity and debt.

Suzlon Energy manufactures wind-turbine generators (WTG).

Suzlon Energy registered a net profit growth of 222% to Rs 193.60 crore (Rs 60.14 crore) for Q1 June 2005. Income from operations rose 203.5%, to Rs 933.77 crore (Rs 307.59 crore).

Src: CM