Suzlon Energy, India’s first indigenous wind technology company, was established in the year 1995 by Mr. Tulsi Tanti. It has grown into to become the fifth largest wind turbine manufacturer in the world and the largest in India and Asia. Suzlon provides a wide range of services and it includes providing total solutions in wind power generation with consultancy, design, manufacturing, installation, operation and maintenance services. The Company’s R&D system leverages the growth of the company. The company has established a technology development centre at Germany and R&D centre at Netherlands for rotor blade molding and tooling. It has wind turbine manufacturing units in India. Suzlon recently acquired Hansen Transmission, a Belgium based Wind gearbox manufacturer. This acquisition allowed the company to exploit technological and manufacturing capabilities in the Wind Gear box segment and other areas. The company has a wide global presence and is operating projects in countries like Australia, Brazil, China, Italy, Portugal, South Korea, Turkey and United States. In order to enhance its global presence company has built manufacturing units, producing Wind Turbine machineries and wind turbine systems, at Belgium, United States and China. It holds nearly 10.5% share in the global market. At present, the company has an installed production capacity of over 3000 MW.

RECENT DEVOLEPMENTS

Suzlon Wind Energy Corporation recently bagged an order amounting $240 million from Horizon Wind Energy of United States, to supply 200 MW of wind turbine.

• The company plans to enter in to Solar and Bio-fuel Business. The company is conducting feasibility study for the further approach in this business. This will help the company to produce 10-20 MW additionally.
• Suzlon recently acquired 30% stake in RE power Systems, a German based wind turbine firm, from French nuclear major Areva. The company with this acquisition is now having total stake of 66% in the REPower Systems.
• Suzlon Energy, in a joint Venture with Bahrain based Arcapita Bank, is going to acquire Honiton Energy, a Chinese wind energy firm.

FINANCIALS

The company recently announced its final quarter results with good figures. The net profit grew by 10% and stood at Rs.4826 Million against net profit of Rs.4378 Million posted in the same quarter last year. Total income of the company rose to Rs.2786.8 Million from Rs.20975.5 Million for the quarter ended march 2007. The Operating profit of the company moved to Rs.6158 million in this quarter from Rs.3940 Million posted in the last quarter ended December, 2007.

The company’s performance when compared with its peers is tabulated below

The company tops the table with an excellent Revenue growth. The rise in the demand for power in Indian and foreign markets boosted the growth of the company. The Expansion plans over the global market and acquisitions of International Wind firms also play a key factor in the growth of the company. But the operating profit margin lowered in this quarter due to the rise in the raw materials, rising costs. The company’s Wholly Owned Subsidiary Hansen Transmissions is going for IPO in the forthcoming Fiscal year. The Funds from this IPO is expected to be channeled for the Cape plans of its Holding company, Suzlon Energy.

The stock has moved back from its January 2008 fall and slowly inching up to Rs.280 in  May but rising inflation, interest hikes besides slow sown in economy are pulling the  stock. It is likely to remain in the downward trend during the ensuing year. The stock market may witness a pull back due to India’s step proceed with nuclear deal with US. However on coming general election is hardly conducive of uninterrupted rise in stock values or economic growth. Softening of oil prices may revive interest in other stocks as compared to Suzlon. Long term investors can enter now as this stock is now trading between Rs.185-210. It has a strong support level at Rs. 175. So for both near term and Long term investors Suzlon Energy will be a pick at this time.