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Suzlon Energy, a leading renewable energy solutions provider, witnessed a significant surge in its share price on Tuesday, reaching a new 52-week high after the company announced robust financial results for the June 2024 quarter (Q1 FY25). The company's net profit for the quarter more than tripled to Rs 302 crore, marking a 200% year-on-year (YoY) jump from Rs 101 crore in the corresponding period of the previous fiscal year.
The company's strong performance was reflected in its revenue from operations, which also experienced a notable increase. Revenue for Q1 FY25 stood at Rs 2,016 crore, representing a 50% surge compared to the Rs 1,348 crore reported in the same quarter of the previous year. This robust growth in revenue was driven by increased demand for renewable energy solutions, demonstrating Suzlon's ability to capitalize on the growing global transition towards sustainable energy sources.
Suzlon's profitability was further underscored by its earnings before interest, taxes, depreciation, and amortization (EBITDA), which rose by nearly 86% to Rs 370 crore in Q1 FY25 from Rs 199 crore in the same period of the previous year. This impressive EBITDA growth translated into a sharp increase in Ebitda margins, which rose to 18.4% from 14.8% in the year-ago period. The company's healthy financial performance is a testament to its operational efficiency and its ability to generate sustainable profits.
The positive financial results and strong growth prospects have prompted Morgan Stanley, a leading global brokerage firm, to maintain its 'overweight' rating on Suzlon Energy, with a revised target price of Rs 58.5 per share. This positive outlook is based on the company's strong performance in the quarter, which exceeded analyst estimates. Notably, total deliveries for the quarter reached 274 MW, surpassing the anticipated 250 MW, reinforcing Suzlon's position as a key player in the renewable energy sector.
Suzlon Energy's Q1 FY25 performance showcased several significant milestones. The company achieved its highest Q1 deliveries in seven years, reaching 274 MW. This strong performance also resulted in the highest quarterly EBITDA in seven years, reflecting the company's commitment to driving operational efficiency and delivering value to its stakeholders. The company's order book also reached an all-time high of 3.8 GW since its inception, indicating strong future growth prospects and demand for its renewable energy solutions.
Source: Suzlon shares hit upper circuit as PAT triples in Q1; Morgan Stanley ups target price