New good news came in Suzlon. Work on creating new capacity of 4.5 GW is underway. The stock will get wings.

wind turbine manufacturer Suzlon Energy Ltd has planned a capital expenditure (capex) of Rs 300 crore for the financial year 2025 (FY25). The company is set to expand its existing generation capacity of 3.1 gigawatt (GW) to 4.5 GW by the end of FY25. CFO Himanshu Modi said in an interview that most of the capex amount will go into the construction of wind turbine generators (WTG) to increase production capacity.

Increasing demand for wind energy in India

India is working towards increasing its wind power capacity to 25 GW by 2028 to meet its climate change targets, which will require an investment of about Rs 2 lakh crore. in the same direction Suzlon is also moving forward to meet this increasing demand while reducing its debt. The company is not only supplying its wind turbines but also offering operational and maintenance (O&M) services. For this, it has recently acquired Renom Energy Services.

Company's Order Book and Challenges

Suzlon's order book currently stands at 5.1 GW, with NTPC and Jindal Renewables as its major customers. However, logistics problems such as completing projects on time and availability of land have affected the company's earnings. CEO Jayaram Prasad Chalasani said that there is a big difference between supply and commercial operation date (COD) in the industry. In the first quarter, about 600 MW of the 770 MW was slated for supply in 2021 and 2022.

financial position of the company

Suzlon's net profit rose 96 per cent to Rs 201 crore in Q2FY25, led by higher deliveries. Net volumes increased to 256 MW, although deliveries declined 6.5 percent compared to the previous quarter.

problem of lack of human resources

Suzlon pointed out that the shortage of skilled human resources is the biggest challenge in the renewable energy sector. CEO Chalasani said that as the company expands, it is important to attract, train and retain skilled human resources.