Suzlon Energy reports net loss of 8.49 billion rupees

Renewable energy major, Suzlon Energy Ltd has reported a net loss of 8.49 billion rupees or $153 million during the first quarter of the financial year till June 2012.

The company had recorded a net profit of 601.2 million rupees during the same quarter of the previous year. The total consolidated sales of the company increased 10 per cent to 47.47 billion rupees. There have been some concerns in the market about the company's ability to redeem its bonds over the previous maturity date.

The investors and creditors are now carefully watching the company and determine its ability to pay on the maturity of the next bond in October. The company is struggling in the market due to a fall in demand for its products amid a slowdown in the global economy.

Tulsi Tanti, chairman of the company has said that the "macroeconomic environment, policy uncertainties in some markets, along with other external factors such as the depreciating rupee continue to impact" the company.

The higher interest costs on the repayment of the company's debt as well as a notional forex loss of 1.53 billion rupees dented the company's earnings in eth quarter, according to Kirti Vagadia, chief financial officer. The company had a total debt of 130.17 billion rupees as on June 30.

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India Cements reports profit after tax of Rs.62.07 crore

India Cements Ltd. (ICL) has reported a lower than expected profit of Rs. 62.07 crore during the first quarter of the financial year till June 2012.

The cement maker had recorded a profit after tax of Rs. 102.03 crore during the same quarter of the previous financial year. The total income from operations of the company rose to Rs. 1,205.07 crore during the quarter from Rs. 1,061.72 crore earlier.

N. Srinivasan, Vice-Chairman and Managing Director said that the profit fell due to various factors including rise in freight charges, revision in power tariffs and increase in wage cost. He also said that the company also had to pay higher landed cost of imported coal due to the fall in the value of the Indian rupee against the US dollar.

He expressed satisfaction at the 14 per cent increase in the company's before interest, tax, depreciation and amortization (EBITDA) to Rs. 281 crore during the quarter. Mr. Srinivasan said ICL was able to imprve its EBITDA during the quarter because it kept its prices unchanged.

Meanwhile, the company is now looking to export markets including Sri Lanka and South Africa for selling its products. "We are looking at exports from India, to countries like Sri Lanka and South Africa. Of course, there are challenges to face in it, but exports is feasible now," said Mr. Srinivasan.

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