Last Updated on September 15, 2024 by Wenivesh Team
On July 23, 2024, the Suzlon Energy share price soared, hitting the upper circuit limit of 5% to reach Rs 57.82, marking a new 52-week high. This impressive surge followed the announcement of the company’s strong financial performance for the first quarter of FY25, where Suzlon reported a net profit of Rs 302 crore, more than tripling from Rs 101 crore in the same quarter the previous year. Revenue from operations also saw a significant increase, growing by 50% year-on-year to Rs 2,016 crore.
Suzlon Energy Share Price Hits Upper Circuit On Positive Q1 Results
The positive momentum didn’t stop there. Morgan Stanley maintained an “overweight” rating on Suzlon and raised its target price to Rs 58.5 per share, reflecting strong confidence in the company’s growth potential. Notably, Suzlon achieved its highest quarterly deliveries in seven years, totaling 274 MW. This was accompanied by a record quarterly EBITDA of Rs 370 crore, representing an 86% increase from the prior year. Additionally, the company’s strong balance sheet, with a net cash position of approximately Rs 120 crore, further supports its bright outlook in the renewable energy sector.
Several key factors contributed to the surge in the Suzlon Energy share price and its remarkable net profit of Rs 302 crore in the first quarter of FY25. The company achieved its highest quarterly deliveries in seven years, totaling 274 MW, significantly boosting its operational performance. Suzlon also reported a record order book of 3.8 GW, providing strong visibility and confidence in future revenue streams. Operational efficiency improved across all business segments, coupled with tight cost control, enhancing profitability. The EBITDA rose by 3.6% to Rs 370 crore, with the EBITDA margin increasing to 18.4% from 16.4% year-on-year.
Although revenue for the quarter was reported at Rs 2,016 crore, a decrease from the previous quarter, it still reflected a significant year-on-year increase compared to the same period last year, indicating strong market demand and operational capacity. The renewable energy sector is experiencing favorable conditions, and Suzlon is leveraging these tailwinds effectively, as indicated by the company’s leadership statements about readiness to meet industry demand.
With the Suzlon Energy share price hitting a 52-week high and a solid financial performance to back it up, Suzlon Energy is on a strong upward trajectory, capturing the attention and confidence of investors and analysts alike. The surge in the Suzlon Energy share price highlights the market’s positive reception to the company’s robust performance and growth potential.
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