Suzlon Energy Ltd Concall Notes - Feb 2025 Q3 FY25 Earnings Overview: Suzlon Energy Limited reported strong performance for Q3 FY25, continuing growth momentum driven by strategic initiatives. Order book at an all-time high of over 5.5 GW, with orders secured for the entire upcoming financial year. Focus on high-quality orders beyond FY26 for better margins. Manufacturing Capacity: Ramp-up in manufacturing capacity to over 4.5 GW, with revamped facilities in Pondicherry and new blade lines in Madhya Pradesh and Rajasthan. Significant order book for S144 model exceeding 5 GW, showcasing strong customer confidence and superior technology. 85% of S144 components sourced domestically, emphasizing the "Made in India, Made for India" initiative. Execution and Deliveries: Record quarterly delivery of 447 MW in Q3, marking a 163% year-on-year growth from 170 MW in the same quarter last year. Total of 977 MW delivered in the first nine months of FY25, surpassing the entire FY24 total of 710 MW. Industry-wide commissioning of approximately 2,277 MW in the first nine months of FY25, affected by transmission delays and land-related challenges. Operational Highlights: 80% of the order book comprises non-EPC orders, prioritizing those with partial land availability for better commissioning visibility. Notable orders from NTPC, Jindal Renewables, and Torrent Power come with substantial land availability, enhancing commissioning prospects for FY26. O&M business maintains 15 GW capacity in India with machine availability exceeding 96%. Financial Performance: Consolidated revenue for Q3 at ₹2,969 crores, a 91% increase year-on-year. Contribution margin for the WTG segment improved to 22.7% for the nine-month period of FY25. EBITDA for Q3 at ₹500 crores, reflecting a 102% increase year-on-year, with an EBITDA margin of 16.8%. Quarterly PAT reached ₹388 crores, a 91% year-on-year increase, indicating a successful financial turnaround. Industry Outlook: India's renewable energy sector, particularly wind, is poised for multi-decade growth, supported by a target of 400 GW by 2047. Management expresses optimism regarding the continuation of order inflow inquiries, with a significant market share in the C&I segment. Strategic Initiatives: Suzlon is a member of the United Nations Global Compact, aligning with the Net 0 by 2050 decarbonization goal. Plans to diversify business within WTG, including advanced project development contracts totaling 1,100 MW. Exploring potential opportunities for exports, depending on domestic market saturation and capacity utilization. Challenges and Risks: Industry challenges include transmission delays and land acquisition issues impacting overall capacity additions. Management acknowledges potential pushbacks in supply due to these challenges but remains confident about future improvements in FY26 and FY27. Margin Guidance: Contribution margins are expected to stabilize around 20% on a consolidated basis, with adjustments based on steel pricing and project execution dynamics. O&M margins expected to maintain around 40%, despite quarter-to-quarter fluctuations due to one-off items. Overall Sentiment: Management displays confidence in Suzlon's operational growth trajectory, supported by a solid order book and strategic initiatives aimed at enhancing capacity and market share. https://t.me/ChartistArena