Suzlon Energy Overturns ₹173 Crore Penalty, Reports Strong Growth

In a favorable development, Suzlon Energy successfully contested a ₹172.76 crore penalty levied by the National Faceless Penalty Centre of the Income Tax Department. The Income Tax Appellate Tribunal (ITAT) overturned the penalty, which pertained to disallowances including a claim for depreciation on goodwill for FY 2017.

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As of December 30, Suzlon Energy's stock was trading at ₹62.31, reflecting a 1.49% decline from its opening price. This movement follows the company's announcement of receiving an income tax refund amounting to ₹173 crore. Despite a recent pullback from its peak price of ₹86, Suzlon shares have risen by over 60% in 2024.

The company, through an exchange filing, confirmed:

"Following the receipt of an order from the Jurisdictional Assessing Officer (JAO) on December 29, the JAO has officially annulled the penalty."

The penalty was originally imposed in March 2024, prompting Suzlon to appeal to the ITAT. With the tribunal’s ruling, the penalty order has now been rescinded.

Performance Highlights for Q2 FY 2025

Suzlon Energy reported a remarkable 96% year-on-year growth in net profit, reaching ₹201 crore, attributed to record-breaking order wins and strong margins. Revenue surged by 48% to ₹2,093 crore during the quarter, while EBITDA increased by 31% to ₹294 crore. The company's order book reached an all-time high of 5.1 GW, including India’s largest wind energy order from NTPC. However, the EBITDA margin contracted to 14.1% from 15.9% compared to the same period last year.

Market Performance and Credit Rating Upgrade

Shares of Suzlon Energy traded flat on Tuesday afternoon, despite CRISIL upgrading its credit rating for the second time in 2024. The rating now stands at ‘CRISIL A’ with a Positive Outlook, reflecting Suzlon's improved financial health and operational efficiency. Earlier in 2024, CRISIL had assigned the company a rating of ‘CRISIL A-’, which has since been elevated.

The company’s market capitalization reached ₹84,381 crore on the Bombay Stock Exchange (BSE). Over the past year, Suzlon shares have climbed 62%, delivering a staggering 482% return over two years. Trading volume for the day was significant, with a turnover of ₹19.09 crore as 30.93 lakh shares were exchanged on the BSE.

Suzlon’s stock touched its 52-week high of ₹86.04 on September 12, 2024, and its 52-week low of ₹35.49 on March 14, 2024. Currently, the stock is trading below its 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages.

CRISIL noted:

"The second upgrade this year signifies Suzlon’s robust operational performance, prudent financial management, and consistent growth. The rating improvement acknowledges better financial metrics and the increasing potential within the renewable energy sector. CRISIL’s Positive Outlook suggests potential outperformance in Suzlon’s WTG business due to higher execution volumes."

About Suzlon Energy

Suzlon Energy Ltd specializes in renewable energy solutions and is a leading manufacturer of wind turbines. The company also offers a comprehensive suite of solar energy services, including solar irradiance analysis, land acquisition, infrastructure development, power evacuation, supply chain management, installation, commissioning, and lifecycle asset management.