Suzlon Energy stabilizes from sharp fall

Suzlon Energy was up 0.26% to Rs 252.50 after declining 21.42% in the past four trading sessions after the company said it will incur an expenditure of Rs 100 crore to rectify faulty rotor blades in Q4 March 2008.

Meanwhile, BSE Sensex was down 36.05 points or 0.22% to 16,653.90.

On BSE, 2.01 lakh shares were traded in the counter. The scrip had an average daily volume of 6.58 lakh shares in the past one quarter.

The stock hit a high of Rs 257.90 and a low of Rs 247.25 so far during the day. The stock had a 52-week high of Rs 460 on 9 January 2008 and a 52-week low of Rs 186.40 on 3 April 2007.

The large-cap scrip had underperformed the market over the past one month till 3 March 2008, declining 21.63% compared to the Sensex’s decline of 8.58%. It had also underperformed the market in the past one quarter, declining 33.05% compared to Sensex’s decline of 14.60%.

The company’s current equity is Rs 299.38 crore. Face value per share is Rs 2.

The current price of Rs 252.50 discounts its Q3 December 2007 annualized EPS of Rs 9.04, by a PE multiple of 27.93

The stock slumped 21.42% in the past four trading sessions to Rs 252.05 on 3 March 2008 from Rs 314.85 on 26 February 2008 ahead of the announcement on Monday, 3 March 2008. The company said that the entire expenditure of Rs 100 crore to rectify faulty rotor blades which have developed cracks in some turbines the company installed in United States will be made in Q4 March 2008.

In Q3 December 2008, Suzlon Energy had made a provision of Rs 19 crore on the same count of blades developing cracks in the US.

On 5 February 2008, the company’s wholly owned subsidiary Suzlon Energy Australia secured an order for 56.7 megawatt of wind turbine from Pacific Hydro, Australia.

On 9 January 2008, Suzlon Energy’s Chinese wholly owned subsidiary Suzlon Energy (Tianjin) winning two 100-megawatt turbines orders.

Suzlon Energy’s net profit rose 91.9% to Rs 338.18 crore on 49.7% growth in net sales to Rs 1654.96 crore in Q3 December 2007 over Q3 December 2006.

Suzlon Energy provides customers with total wind power solutions.